This is according to new industry data analysed by Quilter, which revealed the number had dropped to 2,400 between January and September in 2019 before falling further to the low of 27 in the same period in 2020.
The data comes after the financial planning firm put in a Freedom of Information (FOI) request to the Financial Conduct Authority (FCA).
Despite the fact 40-year terms were almost non-existent, Quilter discovered there was still an appetite for longer mortgages. Indeed, 43% opted for a mortgage longer than 25 years in 2020. This was consistent with previous years, with 43% also choosing a term longer than 25 years in 2019 and 41% doing so in 2018.
Quilter has attributed the dramatic drop in what it calls ‘marathon mortgages’ to the fact there were fewer providers offering such terms.
Those who did offer them didn’t have the high LTV for that period, which was required by the younger buyers who tended to favour longer terms, it said.
Source: Quilter
| >25 – 30 | >30 – 35 | >35 -40 | >40 | # of Mortgages >25 years | Total | |
| 2017 | 171,331 | 144,877 | 20,804 | 9,316 | 346,328 | 857,676 |
| 2018 | 180,115 | 158,640 | 21,650 | 9,575 | 369,980 | 893,066 |
| 2019 | 176,038 | 177,409 | 24,423 | 2,400 | 380,270 | 886,119 |
| 2020 | 140,265 | 140,485 | 24,336 | 27 | 305,113 | 709,141 |
Gemma Harle, managing director of Quilter Financial Planning, said: “It is understandable that the popularity of longer mortgage terms has boomed in recent years as house prices have continued to rise at a faster rate than wage growth.”
