Data from Twenty7tec showed that only 29 per cent were looking for mortgage terms under 25 years.
The company said that this was partially due to 40-year mortgage terms becoming more mainstream following Habito’s launch of the 40-year fixed rate mortgage in 2021.
The company added that looking at purchase mortgage demand for all but first-time buyers showed that searches for 40 years plus rose by around 17 per cent and all other search term demand fell.
Remortgage searches saw a significant uptick with searches for 40 years or more going up by nearly 55 per cent.
First-time buyer searches for mortgage terms of 40 years or more also rose by around 44 per cent.
Nathan Reilly (pictured), director of Twenty7tec, said: “What’s perhaps most interesting about these figures is that the biggest rise is for remortgage searches as this group will have already had a term for at least two years, and they are seeking long-term mortgages as an option to bring payments down.
“Will this be a continued change in 2024? Time will tell, but the data certainly points in that direction. House buyers are actively seeking ways to bring their monthly payments down as other payments soar, and extended terms may be one way to do that.”
He continued: “However, longer-term mortgages can also increase the total debt size and take far longer for house buyers to pay it off, leaving some unable to be mortgage-free until they’re retired.”
