Borrowers facing mortgage payments into their 70s up 156% in five years

21 January 2025

New Freedom of Information (FOI) data from the FCA, analysed by Quilter, the wealth manager and financial adviser, reveals a significant rise in the number of people taking out mortgages with a term of 35 years or more, which will see them paying off their loans well into their 70s.

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 is 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, given that 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 real risk that 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 will 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.

To put this into perspective, the full state pension currently sits at £221.20 a week (2025/26 tax year), or approximately £960 per month. While the state pension will increase over the 35-year mortgage period, so too will the everyday cost of living. This makes it unlikely that the state pension alone will cover a mortgage repayment alongside everyday living costs, leaving people reliant on savings.

Karen Noye, mortgage expert at Quilter says:

“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. 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. 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.

“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.

“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.

“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.”