Ultra-long mortgages rise as buyers lock in 35-year-plus terms

The number of home buyers taking out ultra-long mortgages of more than 35 years surged in 2024, data from Compare the Market shows, highlighting how buyers are adapting to high house prices and elevated borrowing costs. There were 116,276 mortgages with terms longer than 35 years in 2024, up nearly 28% from 90,911 in 2023, and roughly three times the level seen at the Covid-19 peak in 2020, when about 36,000 such sales were recorded.

Lengthier loan terms reduce monthly repayments by spreading the balance over more payments, but borrowers face paying off the loan for a longer period and potentially thousands more in interest over the life of the loan. In a typical scenario cited by Compare the Market and mortgage broker L&C, if England-based borrowers paid a two-year fixed rate of 4.32% versus 4.03% over 36 years, the higher rate would translate to about £20,197 in extra interest.

The trend appears strongest among first-time buyers facing higher prices and tightened affordability tests. The average age of first-time buyers in England is about 34, meaning many who take out 36-year-plus loans could still be repaying into their seventies if they never make early repayments or move homes. Regional patterns show London far ahead of other areas: the number of ultra-long mortgages in central and Greater London reached 14,455 in 2024, up from 10,676 in 2023, with 12,554 London deals recorded in the first nine months of 2025.

Outside London, the South West and the East of England were also prominent for ultra-long terms, while Scotland, Wales and the North East accounted for smaller shares in the first nine months of 2025. Emily Barnett, a mortgage expert at Compare the Market, said: "While ultra-long mortgages can make monthly repayments more affordable in the short term, they come with a significant trade-off as borrowers could end up paying more in interest over the lifespan of the loan. It’s understandable that many are stretching their terms to cope with high house prices and tighter affordability tests, but it’s wise to consider this alongside the long-term cost implications." She added: "Prospective buyers thinking about taking out an ultra-long mortgage should make sure they shop around and compare deals carefully. Even a small difference in the interest rate can add up to tens of thousands of pounds over several decades. Seeking advice from a regulated mortgage broker and reviewing your mortgage regularly can help to ensure you’re not paying more than you need to in the long run."

Loan markets and interest costs have faced pressure from high rates, though a Bank of England move this month aimed to ease that burden. On 18 December, the BoE’s Monetary Policy Committee voted to cut the base rate by a quarter of a percentage point, from 4% to 3.75%. The decision, widely anticipated, reduces the cost of borrowing to its lowest level since February 2023 and is expected to influence mortgage pricing over time. For households already on fixed-rate deals, there will be no immediate change to payments, but tracker rates, which track the base rate, are likely to fall in line as rates move.

David Hollingworth, associate director at L&C Mortgages, said: "Higher interest rates and house prices have inevitably led to more borrowers pushing their payments down by taking longer mortgage terms. That can give more flexibility for monthly budgeting but it does come with a significant cost over the life of the mortgage. It’s vital to put the squeeze on the total interest payable by shopping around for the very best rates available. It may also be possible to review and shorten the term, or to make overpayments as circumstances change. That will help cut the interest bill and potentially get shot of the mortgage more quickly."

The broader housing market continues to respond to rate movements and affordability pressures. Some lenders and brokers are advising borrowers who are refinancing or purchasing to act promptly and lock in favorable terms where possible, while also considering long-term affordability. Homeowners can often lock in a new deal six to nine months ahead of the end of a fixed-rate period, sometimes with no obligation to take the loan, and many deals allow adding fees to the loan balance with interest charged over the term if not paid at completion. These options underscore the need for careful comparison and professional guidance as borrowers navigate a complex landscape.

Overall, ultra-long mortgages reflect a pricing environment where monthly budgets are eased at the cost of longer repayment horizons. Borrowers should weigh the short-term benefits against the longer-term interest exposure and remain vigilant about shifts in rates and house prices that could affect affordability in the years ahead, especially if economic conditions change or buyers reconsider the longer-term commitments they are signing today.