There has been a significant rise in the number of people taking out ultra-long mortgages that they will still be paying off into their seventies.

New data shows there has been a 156 per cent increase in the number of older borrowers taking out longer loan terms in the last five years.

Many have been forced in to longer deals to lower their monthly bills but, as a result, are expected to still be paying their home loan off when they reach pension age.

Those taking out a mortgage for 35 years or more from the age of 36 will be at least 71 when it is fully repaid, meaning there could be an impact on their quality of life in retirement.

More people have been turning to extended mortgage repayment periods to bring down their monthly costs while mortgage rates remain high.

However, paying off their mortgage for longer means they will accrue more interest – and will likely end up paying more overall.

Justin Moy, managing director at EHF Mortgages, said: “Mortgages are running well into retirement age simply to make any mortgage more affordable whilst mortgage rates are high.

“For most borrowers, the opportunity to reduce the term of the mortgage at another time, say on renewal of their rate, will hopefully allow them to bring that end date back inside any potential retirement age.

“The concern would be that borrowers might say they will reduce the term at a later date, but don’t actually get round to achieving this for a number of years.”

In the first nine months of 2024 alone, 22,103 mortgages with a term of 35 years or more were sold to people over the age of 36, according to Freedom of Information data analysed by Quilter.

By comparison, just over 5,900 such mortgages were issued in 2020.

Karen Noye, mortgage expert at Quilter, said the data “highlights growing concerns about housing affordability, rising interest rates, and changing socio-economic trends”.

“The continued rise in property prices has made it increasingly difficult for buyers, particularly those entering the market later in life, to afford homes without significantly extending the repayment term,” she said.

The average age of first-time buyers has risen steadily, and the latest data from Mojo Mortgages suggests it now stands at 33 years and eight months old.

If someone aged 36 took out a £250,000 mortgage with a 35-year term at an interest rate matching the current Bank of England base rate of 4.75 per cent, they could expect to pay a monthly repayment of £1,145.

This figure might fluctuate over the years depending on interest rate levels, but they would need to be confident they can afford to make repayments until the age of 71 – three years after they can expect to qualify for the state pension, and 14 years after they reach the normal minimum pension age.

The full state pension is currently £221.20 a week or roughly £960 a month – meaning people could be reliant on savings to make their mortgage repayments if their pension does not cover the cost.

Noye adds: “Retirees on fixed incomes may find it challenging to manage mortgage payments alongside other living costs, particularly if they have not accounted for this in their retirement planning.

“A generation retiring with outstanding mortgage debt may place additional pressure on state support systems and the housing market itself, as some may be forced to downsize or sell properties to fund their later years.”

However, she said longer mortgage terms are not necessarily bad and certain types of mortgage products allow you to make overpayments where possible, helping to decrease the overall term length.