The proportion of borrowers over 36 taking out 35-year mortgage terms or higher has risen by 251% since 2019, figures show.
According to a Freedom of Information request sent to the Financial Conduct Authority (FCA) by Quilter, in 2024, borrowers aged 36-plus taking out a term of 35 years or more came to 30,338, up from 8,629 in 2019.
The number of borrowers aged 36 or higher taking longer mortgage terms jumped in 2021 specifically, more than doubling from 5,911 in 2020 to 11,092 in 2021. It has continued to increase each year since then.
The report added that during the period, the number of borrowers aged 31-35 years old taking out lengthy loans has risen by 56% to 98,370.
Number of borrowers taking out a term of 35 years or more |
||
| Year | Age 31-35 | Age 36-plus |
| 2019 | 54,919 | 8,639 |
| 2020 | 50,895 | 5,911 |
| 2021 | 81,307 | 11,092 |
| 2022 | 89,322 | 16,170 |
| 2023 | 90,616 | 21,289 |
| 2024 | 98,370 | 30,338 |
The shift shows “broader affordability challenges”, Quilter says, as high property prices and elevated interest rates have made monthly payments “more difficult to manage”, leading many to extend their mortgage terms to lower their payments.
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Quilter noted that for lenders, longer terms can also help applicants meet affordability criteria, as wages have not kept pace with the rising cost of living.
The firm warned that longer mortgage terms in older borrowers show “structural issues” such as “delayed homeownership, limited housing supply, and the growing gap between income and housing costs”.
Quilter added that it also underscored the need for “broader reforms to improve housing affordability”.
Zara Bray, mortgage expert at Quilter, said: “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. 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.
“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.”
She continued: “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.
“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.”
Recent figures from the FCA show that in 2024, around 68% of first-time buyers were selecting mortgage terms of 30 years or more.
In a speech last year, Emily Shepherd, the FCA’s COO, said the potential risk of longer mortgage terms could mean borrowers have fewer options when facing financial difficulties in later life and impact a customer’s financial life.