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Smart tips that could help first-time buyers pay off their mortgage quicker

Published: February 3, 2026 by Jennifer Armstrong

The amount borrowed by the average first-time buyer has reached a record high as loosened affordability tests mean some can borrow more.

According to a Guardian article (15 December 2025), the average first-time buyer borrowed £210,800 in the year to September 2025. While being able to access larger sums could provide a way to get on the property ladder, it might also mean you pay more in interest overall, especially if you opt for a longer mortgage term.

If you’re in a position to, paying off your mortgage quicker could be the savvy thing to do.

5 practical ways to reduce your mortgage term

When you first buy a home, you can select how long you’ll pay the mortgage for. This is known as your “mortgage term”.

Traditionally, first-time buyers repaid a mortgage over 25 years. However, as house prices have increased, so too have the mortgage terms available. It is not uncommon for first-time buyers today to have the choice of a mortgage term of 30 or even 40 years.

The good news is that you don’t have to stick to the initial mortgage term you choose. There are ways to pay off your mortgage sooner, including these five steps.

1. Round up your mortgage repayments now

If you can afford to spend a little extra on your mortgage each month, simply rounding up your repayments can make a difference.

Imagine you’ve borrowed £210,000 through a 25-year repayment mortgage with an interest rate of 4.5%. Your monthly repayment would be £1,167.

If you increased your repayment to £1,300, you’d be mortgage-free four years and three months sooner. What’s more, you’d save almost £27,000 in interest alone.

Overpaying your mortgage could provide you with a way to reduce the debt more quickly while retaining flexibility. If your circumstances change and you need to pause the overpayment, you will be able to do so.

It might be important to keep an eye on your mortgage overpayments. Depending on your mortgage terms, you may need to pay an early repayment charge (ERC) if the total exceeds a certain threshold.

2. Overpay with a lump sum

Similarly, you can make an overpayment as a lump sum, rather than as regular payments.

Using the same scenario as above, if you made a one-off overpayment of £10,000, it would shorten the term by two years and one month, and reduce the total interest paid by almost £20,000.

While most households aren’t in a position to make a lump sum overpayment at the start of their mortgage, your situation might change in the future. You may use your annual bonus or inheritance to reduce the mortgage amount.

As with regular overpayments, you should be aware that you could face an ERC, so be sure to check your contract first.

3. Regularly review your budget

Over time, it’s likely your income will rise. Lifestyle creep could mean your spending rises alongside this salary increase, so you overlook opportunities to reduce your mortgage term.

Carrying out regular budget reviews could highlight where you might be able to cut back or use some of your disposable income to support your goal of paying off a mortgage. Of course, that doesn’t mean your entire salary increase needs to go towards your mortgage or that you neglect other goals. Striking the right balance for you is important.

4. Search for a new mortgage deal when your first one ends

When you take out a mortgage deal, it will last for a defined period, such as two or five years. When the deal ends, you’ll usually be moved on to your lender’s standard variable interest rate, which often isn’t competitive.

Instead, searching for a new deal could secure you a mortgage with a lower interest rate, which would reduce your repayments and potentially allow you to make additional overpayments in the future.

5. Shorten your mortgage term when your deal ends

When your mortgage deal ends, you’ll also have an opportunity to shorten the mortgage term.

In some cases, this means your repayments will rise. However, if the interest rate you’re offered has fallen, you might shorten the mortgage term without it affecting your current household budget.

With a shorter term, you’ll be mortgage-free sooner, and could save money by paying less in interest.

We’re here to answer your mortgage questions

As mortgage advisers, we’re here to help you understand your mortgage and offer guidance when you’re searching for a new deal. Please get in touch to talk to one of our team.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.


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