2021 sees rise in number of 35-year mortgage terms

There has been a sharp increase in the number of mortgage sales with a term of more than 35 years at the beginning of 2021, according to data gathered by Quilter.

A Freedom of Information (FOI) request by the wealth manager revealed that March this year saw 25,112 mortgages sold with a term over 35 years, a 70% increase compared with 14,765 in March 2019.

In March 2018, there were 14,683 were sold while the FOI showed that for three years prior, sales also never surpassed 20,000.

The same FOI request revealed that March 2021 also saw the highest total number of mortgage sales for the past three years, which Quilter suggested was likely due to the original stamp duty holiday deadline of 31 March.

“Following an overall decrease in sales in the first few months of the pandemic, the government’s introduction of the stamp duty holiday caused a rush to the housing market to snap up deals,” commented Quilter mortgage expert, Charlotte Nixon.

“The savings made with the removal of stamp duty, as well as lockdown-driven ‘accidental’ savings, may have allowed buyers to purchase higher cost homes than they would have expected.

“Ultimately, this rush to buy has pushed house prices up significantly across the country and may have contributed to the upswing in buyers opting for longer term deals.”

Quilter also stated that for some borrowers including first-time buyers, securing a mortgage with a 35-year term could be the only way to afford a property due to the lower monthly repayments, but warned of the risks of such long mortgage terms being properly understood.

“One of the largest knock-on effects of securing a mortgage with a term of 35 years is that the longer the mortgage term, the older you will be when making the final repayment,” Nixon added.

“This means that people are likely to be borrowing beyond their retirement age. Whilst some mortgage providers allow this, paying a mortgage in retirement can have a major impact on standard of living with many people becoming unable to comfortably afford the repayments.

“Additionally, whilst a mortgage with a term of 35 years can result in lower monthly repayments, you are likely to pay considerably more in interest over the course of your mortgage term.

“However, whilst there are risks to longer-term mortgages, certain types of these products allow you to make overpayments. This can serve to make repayments past retirement age more manageable. Overpaying will also reduce the amount of interest paid over the term length.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.