More homebuyers aged over 36 rely on extended mortgage terms

The number of people over the age of 36 taking out 35-year or longer mortgages has surged by more than 250% over the past five years, according to new figures obtained via a freedom of information (FOI) request to the Financial Conduct Authority (FCA).

Data analysed by wealth manager Quilter shows that 30,338 mortgages with terms of 35 years or more were sold to borrowers aged over 36 in 2024 – up from 8,639 in 2019. A rise was also recorded among those aged 31 to 35, with the number increasing from 54,919 in 2019 to 98,370 in 2024 – a 79% rise over the five-year period.

The findings come amid growing concerns about housing affordability, as high property prices and elevated interest rates continue to push buyers towards extended loan terms in order to lower monthly repayments.

Year-on-year growth in long-term borrowing

The shift in borrowing habits is reflected in a consistent rise in long-term mortgages over the past five years:

^{Source: Quilter}

Quilter said the figures highlight how more older homebuyers are being drawn to ultra-long mortgages in response to financial pressures.

“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,” said Zara Bray, mortgage expert at Quilter. “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.”

Wider structural issues at play

The trend also underscores broader challenges in the UK housing market, including delayed homeownership, constrained housing supply, and a widening gap between earnings and property costs.

Longer mortgage terms may offer immediate financial relief by lowering monthly payments, but they also come with long-term consequences – particularly for borrowers nearing retirement age.

“Extending your mortgage past retirement age may be a sensible lever to pull in the short term, allowing other assets to remain invested,” Bray said. “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.”

She added that borrowers should consider remortgaging when interest rates fall or when their loan-to-value improves, as this could lower monthly repayments or allow a switch to a shorter term. Other options for those approaching retirement include downsizing or using pension drawdown strategies to 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 noted.

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