New data from the Financial Conduct Authority (FCA), analysed by Quilter, found a 156% rise over five years in the number of borrowers over 36 taking out mortgages with a term of 35 years or more.
In the first nine months of 2024, 22,103 of these mortgages were sold, surpassing any full year since 2018.
In 2018, 15,307 such mortgages were issued.
This number dropped to 8,639 in 2019 and 5,911 in 2020 before rising again to 11,092 in 2021, 16,170 in 2022, and 21,289 in 2023.
Karen Noye, mortgage expert at Quilter, 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.
“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.
Noye added: “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.
“Additionally, demographic and societal shifts mean that many people are purchasing their first homes much later in life.
“The average age of first-time buyers has steadily risen, reflecting the challenges of saving for deposits in a high-cost living environment.
She said: “For older buyers, longer terms help ease affordability constraints but come with significant trade-offs.
“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.
She added: “Furthermore, longer mortgage terms mean borrowers pay significantly more in interest over the life of the loan, increasing the overall cost of homeownership.
“For many, this could erode their ability to save for retirement or meet other long-term financial goals.
“The data also raises questions about how this will impact broader economic trends.
“A generation retiring with outstanding mortgage debt may place additional pressure on state support systems and the housing market itself, as some may be forced to downsize or sell properties to fund their later years.
She said: “While there are several risks to consider, a longer mortgage term does not always spell bad news.
“Certain types of mortgage products allow you to make overpayments, which could help to make repayments past retirement age more manageable.
“Overpaying can also help to reduce the amount of interest paid by decreasing the overall term length.
She added: “If you are considering committing to a mortgage for 35 years or more, it is important to seek professional financial advice where possible.
“A financial planner can help you find the best mortgage product for your circumstances and consider your finances in the round to ensure you have the flexibility to overpay should you wish to.
“At the same time, they can help you plan for a comfortable retirement with the finances available to afford your mortgage repayments.”
