Eight-eight thousand borrowers take on 35-year loans

Almost 90,000 homeowners took out a mortgage with a term of 35 years or more last year, according to Financial Conduct Authority data analysed by wealth manager Quilter. The report shows that 88,000 borrowers took out a mortgage with a term of 35 years or more in 2022, up from about 69,600 the year before and 36,000 in 2020. More than 3,100 of the longer mortgages taken out last year had terms of 40 years or more. Last year more than 12,000 borrowers over the age of 41 took out a mortgage with a term of 30 to 35 years, meaning they could still be paying off their loan in retirement. Ben Tadd from broker Lucra Mortgages commented: "A longer mortgage term has become a basic necessity for many borrowers trying to ensure their monthly payments remain affordable.” 

The Times (29/07/2023)