New data of the Freedom of Information (FOI) of the Financial Conduct Authority (FCA), analyzed by Quilter, shows a huge increase in the number of people older than 36 hours with a period of 35 years or more.
In 2024, 30,338 mortgages with a period of 35 years or more were sold to people older than 36.
During a period of five years since 2019, there is an increase of 251% of the number of older borrowers who purchase longer loan conditions. And there has also been an increase of 56% in the number of borrowers aged 31-35 and taking out these long loans.
As Quilter states, this shift reflects broader challenges on affordability in the British housing market. High real estate prices and increased interest rates have made monthly reimbursements more difficult to manage, so that many borrowers extend their mortgage conditions.
For lenders, longer terms can also help more applicants meet the affordability criteria, especially since wages have not kept pace with the costs of living.
The trend to longer mortgage conditions among older borrowers emphasizes deeper structural problems. These include delayed home ownership, limited housing stock and the growing gap between income and housing costs.
Although longer terms can relieve financial pressure in the short term, they also underline the need for broader reforms to improve the affordability of homes.
Quilter Mortgage expert Zara Bray gave up:
“The jump in older borrowers who opt for ultra-long mortgage conditions emphasizes how stretched affordability has become, but does not necessarily have to be viewed negatively. Given the majority of mortgages, this is a positive example of advice that enables customers to stay in their homes during difficult macro-economic conditions.
“Extending your mortgage in the past retirement age can be a wise lever to draw in the short term, so that other assets can be invested.”