Number of homeowners paying mortgages into 70’s on the increase

A 156% increase in the number of home owners paying their mortgage into their 70’s ‘paints a striking picture of how financial pressures are reshaping homeownership’ says wealth management and financial services firm Quilter. 

Mortgage terms of thirty five years or more, combined with later life home ownership because of affordability pressures, means a significant increase in the number of homeowners who will be paying a mortgage into retirement. The total number of mortgages sold to people over the age of 36 with a 35 year term, according to a Freedom of Information request from the Financial Conduct Authority (FCA), hit 22,103 in the nine months to September 2024; up from 15,307 for a full year in 2018; a 156% increase over the last five years.

Commenting on the figures 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.”

Noye adds paying a mortgage so late in life could ‘adversely affect 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 (appreciating this figure may fluctuate over the years depending on interest rate levels throughout their mortgage term). 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 cost of living; leaving people reliant on private pensions and savings to fund repayments.

“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.”

Concludes Noye.