Boom in ultra-long mortgages that mean a £500k house costs £1m

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The number of people taking out mortgage terms that mean they will be making payments into their seventies has quadrupled in the past five years, new figures have revealed.

Article originally published by The Telegraph. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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25 Jul 2023

More than 12,000 people aged over 41 took out a mortgage term between 30 and 35 years in 2022, compared with just 3,035 people in 2018, according to data from the City watchdog.

It comes as millions of households see the cheapest mortgage deals in history expire, leaving them paying hundreds of pounds more a month when they come in remortgage at today’s far higher rates.

The data from the Financial Conduct Authority, which was obtained by a Freedom of Information request from wealth manager Quilter, shows the total number of people taking out mortgages with terms of 35 years or more also hit a high of 88,059 last year, a 117pc increase on 2018.

Most major lenders have signed a “mortgage charter” that allows borrowers to extend their mortgage term and reduce their monthly payments, with the option to switch back within six months, as a way to bring down monthly