President Donald Trump's 50-year mortgage plan has sparked debate, but broker says the two countries have very different approaches to debt
Donald Trump’s proposal to introduce 50-year home loans in the United States has reignited a question familiar to UK brokers: how far can policymakers stretch terms before affordability fixes turn into financial traps?
The plan, under discussion by the Federal Housing Finance Agency, would double Britain’s standard 25-year term and add two decades to America’s traditional 30-year mortgage. Supporters say it could ease monthly payments; critics warn it risks tying borrowers to lifelong debt and fuelling further price inflation.
At current US rates, a $200,000 loan stretched from 30 to 50 years would save around $100 a month, but leave borrowers paying into retirement and far more in total interest.
Affordability or illusion?
The idea lands amid record pressure on US homeowners: more than nine in 10 say property is overpriced, and the average first-time buyer is now 40. For UK brokers, facing similar affordability strain, the question is whether ultra-long loans could ease access, or simply move the goalposts.
Kessar Salimi of Freedom Finance said the appeal is clear for first-time buyers trying to pass affordability tests. “Many clients are looking for low monthly payments when buying their first home. Many will progress in their careers and have less overheads as children have grown up and then prioritise paying the mortgage off,” he said.
But he warned that any relief would be short-lived. “It will help buyers initially but could lead to higher property prices as the market catches up.” Salimi added that the US system’s long-term fixed rates offer lessons for Britain: “US mortgages are usually fixed for the term rather than our typical shorter fixes, which helps clients budget better and not be caught out by any sudden interest rate hikes like we had post mini budget.”
Amol Karve, founder of Mortgage Kart, is unconvinced that half-century loans could ever take root in Britain. “I don’t think that fundamentally Brits think about debt the same way that Americans do,” he said. “We like to end up owning our property and settling our obligations, not carrying them for life or passing them on.”
Karve also cited the structural differences in funding. “In America, the bond markets are so deep that finding 30-year money or 50-year money is quite commonplace. I don’t think that finding 30-year money or 50-year money in the UK is very commonplace,” he said, noting the limited progress of experiments such as Perenna. “Unless you’ve got a government structure to back these things - unless the government is the market maker - I don’t think the UK government wants to, or quite frankly can, do anything of that sort.”
From years of advising borrowers, Karve added, “I have not seen even one customer ask for a 30-, 40- or 50-year fixed term. A lot of fundamental changes need to happen before those conversations can even be entertained by the average player.”
Implications for Brokers
For advisers, the debate goes to the heart of affordability and Consumer Duty. Longer terms can help clients clear lender stress tests but slow equity build-up and risk leaving borrowers with minimal ownership for decades. Suitability and sustainability, rather than headline affordability, would dominate any regulatory scrutiny.
Fifty-year lending would also test lenders’ balance sheets and product design. Without government or institutional backing, few could stomach such long-dated exposure.
Still, the US discussion is a timely warning. Extending terms may ease pressure today, but it can’t fix the underlying shortage of homes. For brokers, the focus remains helping clients understand that every extra year on the term carries a cost, even if the monthly number looks easier to swallow.
