A growing number of older borrowers are turning to ultra-long mortgage terms in an effort to manage the rising cost of homeownership, new data from the Financial Conduct Authority has revealed.
Figures obtained via a Freedom of Information request and analysed by Quilter show that in 2024, 30,338 mortgages with terms of 35 years or more were taken out by individuals aged 36 and over — a 251% increase compared to 2019, when just 8,639 such loans were issued to that age group.
The data also highlights a 56% increase in long-term borrowing among those aged 31 to 35 over the same period, with 98,370 mortgages of 35 years or longer sold to this age group in 2024, up from 54,919 in 2019.
The findings come against a backdrop of persistent affordability pressures in the UK housing market. High house prices and elevated interest rates have made it harder for buyers to meet monthly repayments, with many opting to stretch mortgage terms to reduce upfront costs.
For lenders, the longer terms can help applicants pass affordability tests — particularly as wage growth continues to lag behind inflation and property values.
Zara Bray, mortgage specialist at Quilter, said the rise in older borrowers opting for extended terms was a sign of how squeezed household finances have become, though not necessarily a cause for concern.
“The jump in older borrowers opting for ultra-long mortgage terms highlights just how stretched affordability has become but doesn’t necessarily need to be viewed negatively,” she said.
“Given the majority of mortgages are supported by a mortgage adviser, this is a positive example of advice enabling customers to remain in their homes during difficult macroeconomic conditions.”
PRAGMATIC SOLUTION
Bray added that for some, extending a mortgage beyond retirement age could be a pragmatic solution that enables other assets to remain invested. However, she cautioned that long-term borrowers should remain proactive.
“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,” she said.
“Remortgaging to a better deal when interest rates fall or your loan-to-value improves can lower monthly repayments or allow you 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.”
She also noted that overpayments, even modest ones, can make a significant dent in the overall cost of borrowing and reduce the term of the loan.
