The Rise of Ultra-Long Mortgages

Data from the Financial Conduct Authority (FCA) indicates that more borrowers are opting for ultra-long mortgages in an effort to manage rising housing costs.

According to the analysis, in 2024 there were 116,276 mortgages taken out with repayment periods of 35 years or more. This is over three times the number sold in 2020, highlighting how borrowing conditions have changed significantly in recent years. As affordability challenges persist for buyers, longer mortgage terms help to reduce the cost of monthly repayments. While this can make finances easier to manage in the short term, it is more expensive in the long run.

The longer a mortgage, the more interest is accrued, meaning borrowers could end up paying substantially more for their home over time. Plus, the average age of first-time buyers has risen to 34, so many people could have mortgages that extend into retirement, which can create challenges for long-term financial planning.

The cost of longer mortgages

Calculations by Compare the Market highlights the cost of ultra-long mortgages. Using the average UK house price of £293,000 and a 10% deposit, the figures show how interest costs can quickly add up over time. Based on a 36-year mortgage, the difference between a two-year fixed rate of 4.32% and a slightly lower rate of 4.03% equates to a difference of £20,197 in additional interest repayments. This shows that even small differences in interest rates, when combined with very long mortgage terms, can significantly increase the total cost of borrowing

For borrowers considering an ultra-long mortgage, it’s therefore important to weigh the short-term benefit of lower monthly payments against the long-term cost. Make sure to review options regularly as circumstances and interest rates change.

What we know about 2025

Data for the first nine months of 2025 shows that London was the most popular area to take out ultra-long mortgages. During this period, 12,554 mortgages were taken out with terms over 35 years. This is slightly lower than the 14,455 recorded over the same period in 2024, but is higher than the 10,676 seen in 2023. After London, the South West saw the most ultra-long mortgages (12,457), followed by the East of England (11,181) and the South East (10,373). These are the regions where houses are most expensive, underlining the link between higher property prices and the growing use of extended mortgage terms.

Talk to us

If you’re hoping to make your property dreams come true this year, get in touch. We can talk through your mortgage options and help find a suitable option that will work for you, both now and in the future.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Sources:

https://www.mortgagestrategy.co.uk/news/borrowers-taking-out-ultra-long-mortgages-more-than-triples-since-2020-compare-the-market/