Why More Homebuyers Are Extending Their Mortgages Into Their 70s

As house prices soar, the cost of living climbs, and interest rates remain elevated, many homeowners are looking for ways to keep monthly expenses manageable. For a growing number of buyers, that means stretching their mortgage terms well into their 70s—and sometimes even to age 80.

Mark Humphrey, director of MHC Mortgages, explains that most lenders are now open to mortgage terms lasting up to age 75, with minimal checks to ensure affordability. "We have a small number of lenders that may even offer a term up to age 80 using income from employment," he says. These longer mortgage terms are no longer niche products; they're becoming an increasingly mainstream solution to affordability challenges.

Data from the Financial Conduct Authority (FCA), analyzed by wealth manager Quilter, shows how rapidly this trend is accelerating. In the first three quarters of 2024 alone, more than 22,000 mortgages with 35-year terms were issued to buyers over the age of 36—surpassing full-year figures from any year since 2018. Over the past five years, the number of older borrowers taking out extended-term mortgages has surged by a staggering 156%.

"Increasingly, borrowers are carrying on paying their mortgages into their 70s," says Mark Harris, chief executive of SPF Private Clients. "There are several reasons for this—people are living and working for longer, so they can afford to pay a mortgage past what would normally be considered standard retirement age. Longer mortgage terms also mean payments are lower and therefore more affordable."

The demand for these long-term products has brought increased flexibility and broader choice, and much of the social stigma once associated with carrying a mortgage into later life has faded away. In today's housing market, a longer mortgage term is simply a financial tool—one with pros and cons.

Among the key benefits is lower monthly payments. By spreading the loan over a longer period, borrowers can buy a more expensive home, free up monthly income to cover other obligations like childcare or tuition, and potentially maintain a more comfortable lifestyle. "The key advantage of having a mortgage into your 70s is that it provides you with increased options when it comes to planning what you want to do with your home," says Richard Dana, CEO of Tembo Money.

Longer mortgage terms can also be a lifeline in the wake of life changes such as separation or divorce. When a joint mortgage becomes a sole one, extending the term may be the only way to afford a new home. Humphrey notes that in many of these cases, borrowers don't plan to carry the mortgage into retirement but use the extended term to buy time. They may downsize, accelerate payments later, or pay off the loan early through inheritance or improved income.

Another upside is that interest rates on extended-term mortgages are usually in line with shorter-term options. "In recent years the rates available have been generally competitive relative to the mainstream market," says David Carmichael, director of Taylor Carmichael Financial Services. The main tradeoff is a smaller pool of lenders, which may limit some choices.

Still, longer mortgage terms are not without drawbacks. Chief among them is the total interest cost. A loan that spans an extra decade or more means paying more in interest over time. "You have a mortgage for a longer period of time, so you will pay more interest on the debt than you otherwise would have done," Harris points out.

There are also practical considerations around career longevity. Lenders may scrutinize the type of work a borrower does before approving a mortgage that stretches past traditional retirement age. Physically demanding jobs or careers with mandated retirement—like pilots or firefighters—may raise concerns. Carmichael notes that lenders "sense check very carefully the occupation of a borrower declaring 70 as their expectation of retirement age."

Then there's the question of what happens if you retire before the mortgage is paid off. Anyone considering a long-term mortgage needs a plan for that scenario. Will your pension or other income be enough to cover the payments? Is downsizing an option later on? These are crucial discussions to have before committing to a decades-long financial obligation.

In the end, extending a mortgage into your 70s can be a practical solution to an increasingly expensive housing market—but it requires thoughtful planning. The appeal lies in immediate affordability and flexibility, but borrowers must weigh that against the long-term financial implications. With proper foresight and regular review, a mortgage into your later years doesn't have to be a burden. For many, it's simply a new approach to homeownership in a changing economic landscape.

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