More than half of all broker searches in October were for mortgage terms of 30 years or more, says Twenty7tec. 

The criteria search engine says that 35% of enquiries on its platform were for home loans of between 30- and 39-year terms, while deals for 40 years and over accounted for 22% of searches. 

It adds that demand for home loans of 40 years or more have almost doubled over the last two years from 12% in December 2021. 

Twenty7tec chief executive James Tucker says: “Marathon mortgages are becoming increasingly commonplace.  

“Since Habito offered UK homebuyers their first 40-year fixed-rate mortgage in March 2021, long-term mortgages have taken the market by storm.  

“The cost-of-living squeeze has undoubtedly played its part, and more providers, notably HSBC, are entering the market at the end of August.  

“It is harder for prospective buyers to afford the monthly payments on a traditional 25-year deal, and homebuyers needed an alternative. Back in December 2021, interest rates were 0.25%. They’re now levelling off at 5.25%.  

Tucker adds: “The combination of smaller deposits or lower monthly payments when rental costs are soaring will certainly appeal to many, and these extended terms may be the only way for some people to get their feet on the housing ladder.  

“However, longer mortgage terms can also increase the total debt size. In some cases, the homebuyer won’t be mortgage-free until they are nearing retirement, so careful consideration is necessary.” 

Twenty7tec says it acts for over 100 major lenders, including all of the top 20, and its data represents over 50% of all broker searches.