Surge in under 30s securing 35-year mortgage terms

Based on figures from Experian, this increased cost means many people will be nearing retirement before they’re able to pay back their mortgage loan in its entirety – with this group of under 30s now becoming known as the Mort-locked generation.

 
And whilst an extended mortgage term can help to keep monthly repayments down, homeowners are likely to pay more interest on their loans over time, as mortgages get more expensive.

Experian analysis also found there was a 28% decrease in mortgage applications in July this year compared to the same month in 2022, suggesting many might be choosing to stay in their existing locations or rent rather than buy a new property with the current high interest rates on loans. Additionally, mortgage applications for first time buyers were down 19% on last year. 

Experian’s head of consumer affairs James Jones 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.”