The number of borrowers taking out marathon mortgages has more than doubled over the last four years as people bid to bring down monthly home loan payments, data from Quilter shows. 

Homeowners taking out a home loan with terms of 35 years or more hit a high of 88,059 in 2022 compared to just 40,471 in 2018 – a 117% increase, says the investment firm. 

It points out that while increasing the term of a home loan brings down monthly mortgage payments, it also means the amount repaid in total rises.   

The data comes after the Bank of England has raised the bank rate 13 times in a row since December 2021 to 5%. 

The firm points out that the number of people who will still be paying off in their mortgage into their 70s has risen almost four times over the last four years. 

In 2022, there were over 12,000 people over the age of 41 who took out a 30 to 35-year mortgage. 

This compares with just 3,035 people over the age of 41 took out this type of home loan in 2018. 

The firm points out that assuming someone age 41 had a mortgage of £250,000 with a 35-year term on an interest rate of 3%, which is roughly the average for the past 20 years, they could expect to pay £962 monthly repayments or £11,544 over the year.  

It adds: “While this figure may go up and down over the years depending on interest rate levels throughout their mortgage term, they will need to be confident they can afford to make these sizable repayments until the age of 76 using their retirement wealth.” 

Quilter mortgage expert Karen Noye says: “For many people, to realise the dream of homeownership or to simply obtain an affordable mortgage they have had to increase the term of their mortgage. While this is not inherently wrong and can be a lifeline for people during this difficult time, it does have the potential to stretch people’s finances later in life particularly for those in their 40s. 

“For anyone considering entering into a mortgage that will see them well into retirement, it is vital they think ahead and are aware of the potential risks. Many people under-save for their retirement anyway without even taking into account the fact they will not be earning and need to pay for a mortgage as well as living costs. 

“Similarly, while a mortgage term of 35 years or more can result in lower monthly repayments, you are likely to pay considerably more in interest over the course of your mortgage term. 

But she points out: “Certain types of mortgage products allow you to make overpayments which could help to make repayments past retirement age more manageable. Overpaying can also help to reduce the amount of interest paid by decreasing the overall term length.” 

Quilter’s figures come from new Freedom of Information data from the Financial Conduct Authority.