Thousands of homeowners will be paying off mortgages into their 70s as more borrowers over the age of 36 are forced to take out longer loans.
The number of people taking out mortgages with a term of 35 years or more has jumped 274 per cent since 2020.
Higher interest rates have pushed up mortgage payments, prompting borrowers to stretch the terms to 35 years in an effort to make monthly costs more manageable.
Rising house prices also mean first-time buyers are older when they first get on the housing ladder.
In 2020, 5,911 mortgages with a term of 35 years or more were sold to homeowners over the age of 36.
But in the first nine months of 2024, the number jumped to 22,103, according to a Freedom of Information request to the Financial Conduct Authority by wealth manager Quilter.
Squeezed: The number of people taking out mortgages with a term of 35 years or more has jumped 274% since 2020
A 36‑year-old taking out a £250,000 mortgage with a 35-year term and an interest rate at the current Bank of England base rate of 4.75 per cent would face monthly repayments of £1,145 and would be 71 by the time it is paid off.
Borrowers could be forced to dip into their retirement savings to pay off longer mortgages.
Karen Noye, mortgage expert at Quilter, says: ‘Longer mortgage terms mean borrowers pay significantly more in interest over the life of the loan, increasing the overall cost of home ownership.
‘For many this could erode their ability to save for retirement.’
