The number of people over the age of 36 taking out 35-year mortgages has surged by more than 250% over the past five years, according to new data that lays bare the deepening strain on UK housing affordability.
Figures obtained via a Freedom of Information request to the Financial Conduct Authority (FCA), and analysed by wealth manager Quilter, show that 30,338 borrowers aged over 36 took out ultra-long-term mortgages in 2024 – an increase of 251% compared to 2019.
Among borrowers aged 31 to 35, the use of 35-year-plus terms rose by 56% over the same period.
The trend reflects a wider shift in borrowing patterns as households grapple with high property prices, stubbornly elevated mortgage rates, and wage growth that continues to lag behind the cost of living.
REDUCE MONTHLY REPAYMENTS
Longer mortgage terms are increasingly being used as a way to reduce monthly repayments and meet affordability thresholds under stricter lending rules.
However, the sharp increase in long-term borrowing among older age groups signals a broader structural challenge.
Traditionally, borrowers taking out 35-year mortgages would be expected to do so in their 20s, allowing the loan to be repaid before retirement.
By contrast, today’s older borrowers face the prospect of carrying debt well into their 70s – raising questions about long-term financial security and retirement planning.
FIRST-TIME BUYER SHIFT
The rise in extended loan terms also coincides with a broader shift in the housing landscape. First-time buyers are older than ever, with many delaying purchase due to high rental costs, difficulties saving for a deposit, or insecure employment. Meanwhile, the supply of affordable homes remains constrained, keeping house prices elevated in many parts of the country.
While taking a mortgage over 35 years can ease pressure on household finances in the short term, the trade-off is higher overall interest payments and a longer path to outright ownership. Borrowers may also face challenges refinancing or repaying their mortgage if retirement comes before the end of the loan term.
HOUSING SUPPLY
Industry analysts warn that unless housing supply improves and affordability conditions stabilise, long-term mortgages for older borrowers may become the norm rather than the exception.
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.”
