There has been a “significant” rise in the number of people taking out mortgages with a term of 35 years or more, says Quilter.
A Freedom of Information request to the Financial Conduct Authority revealed that in 2024, 30,338 mortgages with a term of 35 years or more were sold to people over the age of 36.
Over a five-year period since 2019, there has been a 251% surge in the number of older borrowers taking out longer-term loans. There has also been a 56% increase in the number of borrowers aged 31-35 taking out lengthy loans.
This shift reflects affordability challenges in the UK housing market, Quilter said. High property prices and elevated interest rates have made monthly repayments more difficult to manage, leading many borrowers to extend their mortgage terms.
However, the trend toward longer mortgage terms among older borrowers also highlights a number of other challenges, including delayed homeownership, limited housing supply and a growing gap between income and housing costs.
Zara Bray, mortgage expert at Quilter, said: “Extending your mortgage past retirement age may be a sensible lever to pull in the short term, allowing other assets to remain invested. However, the key to avoiding challenges with a long-term mortgage later in life is to regularly speak to your adviser, as they will be actively scanning the market for improved rates or new innovative products that address the affordability strain – providing more options at the end of your fixed term.”
Bray said that remortgaging to a better deal when interest rates fall or loan-to-value improves can lower monthly repayments or allow homeowners to switch to a shorter term.
“For those approaching retirement, it’s worth exploring whether downsizing or using pension drawdown strategies could help manage repayments more sustainably.
“There are other steps people can take to reduce the long-term burden. Overpaying on your mortgage, even by small amounts, can significantly reduce the total interest paid and shorten the term,” she added.
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