Data from the Financial Conduct Authority (FCA), analysed by wealth management service Quilter, reveals a significant rise in the number of people taking out mortgages with a term of 35 years or more.
In 2024, 30,338 mortgages with a term of 35 years or more were sold to people aged over age 36. Over a five-year period since 2019 there has been a 251% increase in the number of older borrowers taking out longer loan terms. There has also been a 56% increase in the number of borrowers aged 31-35 taking out these lengthy loans.
| Number of borrowers taking out a term of 35 years or more | ||
| Year | Age 31-35 | Age 36+ |
| 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 |
This shift reflects broader affordability challenges in the UK housing market. High property prices and elevated interest rates have made monthly repayments more difficult to manage, prompting many borrowers to extend their mortgage terms. For lenders, longer terms can also help more applicants meet affordability criteria, especially as wages have not kept pace with the cost of living.
The trend toward longer mortgage terms among older borrowers highlights deeper structural issues. These include delayed homeownership, limited housing supply, and the growing gap between income and housing costs.
While longer terms may ease short-term financial pressure, they also underscore the need for broader reforms to improve housing affordability.
Zara Bray, mortgage expert at Quilter, says: “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.
“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.”
