The next generation of homeowners may be paying off their mortgages into retirement due to the increasing age of first-time buyers and buyers seeking longer-term mortgages, according to analysis from Trussle.

Recent data from lenders, published by Halifax, indicated that the average age of first-time buyers has risen to 32, up from 29 a decade ago.

Online mortgage broker Tussle suggested this increase is “unsurprising” as house price inflation has caused the age of first-time buyers to rise sharply. However, the broker highlighted that the trend could be exacerbated further by the current cost of living crisis, which could see the age of first-time buyers continue to increase as a result.

Furthermore, first-time buyers have been seeking longer-term mortgages in an attempt to combat spiralling house prices during the stamp duty holiday. Data from the FCA during this period shows that a record 63,158 35-year mortgages were taken out by first-time buyers, representing a 75% year-on-year increase.

While this means first-time buyers will repay more over the course of their mortgage term, it will make their monthly repayments more affordable in the short-term.

“This is an alarming trend that has been brewing for years,” said Trussle head of mortgage operations, Amanda Aumonier.

“When purchasing a home, buyers naturally think about the here and now, which typically means looking for ways to keep their payments as low as possible. But, while taking out a longer-term mortgage can be an effective way to keep short-term costs low, you will end up paying more back in the long-term. Not only this, but you could also still be paying off your mortgage during a period of life when your income begins to drop.

“It’s no secret that housing affordability has been spiralling for years, impacting the possibility for many first-time buyers to get on the ladder. But, we have also taken a short-term approach into calculating the impact of soaring house prices.

“This new data shows that the ramifications will reverberate for decades to come and will lead to consequences not yet accounted for. If this trend is to be addressed, we will need to see urgent action on affordability today.”

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