More mortgage borrowers to keep paying after retirement as ultra-long loans triple ...Middle East

The number of mortgage borrowers taking out ultra-long loans of over 35 years has more than tripled since 2020, analysis shows.

When you take out a mortgage, you have flexibility on the period you repay the loan over, with 25 to 35 years being the norm.

But Compare the Market Analysis of Financial Conduct Authority data shows there were 116,276 mortgages sold in 2024, where the term was 36 years or more.

This is up from 90,911 in 2023 and 36,036 in 2020.

If you take out a long mortgage, your monthly repayments are far lower, because you are spreading the cost over a larger amount of time.

But overall, you end up paying more in interest, as you are borrowing for longer, too.

Longer mortgages can also mean people are still repaying their mortgage past their retirement.

The average first-time buyer in England is currently 34, meaning someone of this age taking out a loan of 36 years would owe money until they are 70.

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If you take out a long loan, you can remortgage later and reduce the term.

You can also often shorten the term if you take out a long loan, and later find your earnings increase, and you can afford to pay more.

Emily Barnett, mortgage expert at Compare the Market, said: “While ultra long mortgages can make monthly repayments more affordable in the short term, they come with a significant trade-off as borrowers could end up paying more in interest over the lifespan of the loan.

“It’s understandable that many are stretching their terms to cope with high house prices and tighter affordability tests, but it’s wise to consider this alongside the long-term cost implications.

“Prospective buyers thinking about taking out an ultra-long mortgage should make sure they shop around and compare deals carefully. Even a small difference in the interest rate can add up to tens of thousands of pounds over several decades.”

If you do take out a longer mortgage, it makes it even more crucial to ensure you are paying as low a rate as possible.

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Calculations by Compare the Market and mortgage brokerage L&C show that the interest paid over 36 years can be significant. If a borrower in England were to pay a two-year rate of 4.32 per cent, versus a two-year rate of 4.03 per cent, over 36 years, the difference between these rates equates to £20,197 in interest repayments.

This calculation is based on the average house price in England of £293,000 according to the latest Office for National Statistics (ONS) and assumes the buyer has put down a 10 per cent deposit.

Hence then, the article about more mortgage borrowers to keep paying after retirement as ultra long loans triple was published today ( Friday 19/12/2025 - 02:41 PM ) and is available on inews ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.

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