Borrowers managing price rises with 35-year mortgages

Evidence uncovered by Quilter has revealed that the number of borrowers seeking mortgage repayment periods of 35 years or over has hit its highest level in three years, due to house price rises.

Quilter discovered this data by submitting a request under Freedom of Information. It shows a 70 percent annual rise – with the exception of 2020 – in the number of borrowers that are taking out mortgages with a minimum 35-year repayment term. March 2021 saw a total of 25,112 mortgages of this sort agreed, while in the same month for 2019, the number was 14,765, and for 2018 it was 14,683.

A mortgage expert at Quilter, Charlotte Nixon, stated that the number of borrowers able to buy homes with high prices had risen due to people building their savings during the Covid-19 lockdowns and the temporary raising of the stamp duty threshold on property purchases.

According to Mortgage Solutions, Nixon then went on to add that:

“Ultimately, this rush to buy has pushed house prices up significantly across the country and may have contributed to the upswing in buyers opting for longer term deals.”

The mortgage expert then pointed out that while these long repayment terms offer a way into the housing market for many, they also mean that some may find themselves still facing repayments after they retire.

This is a situation where an advisor with a CeMAP qualification is well equipped to explain to borrowers both the advantages and pitfalls of taking out a mortgage with such a long term of repayment.


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