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Many More 35-Year Mortgages - new figures show surge

New data from Experian reveals that one in four mortgages lent to those under 30 now have a term of 35 years or more. 

This is up from one in 10 in 2020, an increase of 150 per cent.

The increased cost of borrowing means that many people will be nearing retirement before they’re able to pay back their mortgage loan in its entirety. This group of under 30s who have agreed to such lengthy repayment terms are now becoming known as the Mort-locked generation. And whilst an extended mortgage term can help to keep monthly repayments down, homeowners are likely to pay more interest on their loans over time, as mortgages get more expensive. 


According to partner L&C Mortgages, the average two year fixed rate deal now stands at 5.99 per cent, whilst a standard variable tariff is a staggering 8.22 per cent.

High interest rates are likely to be affecting mortgage applications, as July this year recorded a seasonal low for new homeowners, despite typically being the height of the UK’s moving season. 


Experian analysis found that there was a 28 per cent decrease in mortgage applications in July this year, compared to the same month in 2022. It suggests many people might be choosing to stay in their existing locations or rent rather than buy a new property with the current high interest rates on loans. Mortgage applications for first time buyers were also down 19 per cent on last year.

James Jones, head of consumer affairs at Experian, says: “Our data suggests that people under 30 are looking to secure longer mortgage repayment terms to help keep monthly repayments down on their homes, and this could also be affecting property buying among house hunters.  

“With high interest rates increasing the pressure on borrowers, young people may feel like they have been locked in, so we’re encouraging people to consider ways that they might be able to secure better deals on their mortgage terms. We’d suggest engaging with your credit score and considering whether it can be improved, even if you’re not yet looking to move. 

“A credit score can impact everything from your eligibility to your repayment terms, as it acts as a financial track record for lenders looking to see how reliable you are. Building a good score and credit history will stand you in good stead for the future.” 


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