A quarter of homeowners under 30 have a repayment term on their mortgage of 35 years or more, according to Experian.
The credit reference agency said that this is up from just one in 10 in 2020 – a staggering increase of 150 per cent.
It means many under 30s will be approaching retirement before they’re able to pay their mortgage back.
Affordability benefits
A longer mortgage term is appealing due to lower monthly repayments, which can help borrowers jump over affordability hurdles.
Experian said that, according to partner, L&C Mortgages, the average two-year fixed rate deal now stands at 5.99 per cent, whilst a standard variable is 8.22 per cent.
But, of course, while a longer term can enable buyers to get onto the ladder, they will pay back more overall.
This could mean having to potentially pay their mortgage for their entire working life, or beyond.
James Jones, head of consumer affairs at Experian, said: “Our data suggests that people under 30 are looking to secure longer mortgage repayment terms to help keep monthly repayments down on their homes, and this could also be affecting property buying among house hunters.
“With high interest rates increasing the pressure on borrowers, young people may feel like they have been locked in, so we’re encouraging people to consider ways that they might be able to secure better deals on their mortgage terms.
“We’d suggest engaging with your credit score and considering whether it can be improved, even if you’re not yet looking to move.”
