There has been a significant rise in the number of people taking out mortgages with a term of 35 years or more, according to new freedom of information (FOI) data analysed by Quilter.

The wealth manager reported that in the first nine months of 2024 alone, 22,103 mortgages with a term of 35 years or more were sold to people aged over age 36. This figure was higher than any previous full year since 2018.

Over a five-year period since 2019, there has been a 156% increase in the number of older borrowers taking out longer loan terms.

However, Quilter warned that given those taking out a mortgage for 35 years or more from the age of 36 will be at least 71 when it is fully repaid, there is a risk their monthly repayments could adversely affect their quality of life in retirement.

Assuming someone aged 36 takes out a £250,000 mortgage with a 35-year term at an interest rate matching the current Bank of England base rate of 4.75%, they could expect to pay a monthly repayment of £1,145.

While this figure may fluctuate over the years depending on interest rate levels throughout their mortgage term, they would need to be confident they can afford to make their repayments until the age of 71 – three years after they can expect to qualify for the state pension, and 14 years after they reach the normal minimum pension age.

Mortgage expert at Quilter, Karen Noye, said the sharp increase in the number of mortgages sold to individuals over the age of 36 with a 35-year term in the UK highlights “growing concerns” about housing affordability, rising interest rates, and changing socio-economic trends.

“From just over 5,900 such mortgages issued in 2020 to more than 22,000 in the first nine months of 2024 alone, the data paints a striking picture of how financial pressures are reshaping homeownership,” Noye said.

“The continued rise in property prices has made it increasingly difficult for buyers, particularly those entering the market later in life, to afford homes without significantly extending the repayment term. At the same time, higher interest rates have pushed up monthly payments, prompting many borrowers to stretch their mortgages to 35 years in an effort to reduce these costs.

“The ramifications of this shift are far-reaching, especially as more people approach retirement age with mortgage debt still to repay. Retirees on fixed incomes may find it challenging to manage mortgage payments alongside other living costs, particularly if they have not accounted for this in their retirement planning.”

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