Surge in ultra-long mortgages among under-30s

The Bank of England's data shows that in the final three months of 2021, some 31% of new mortgages had an end date beyond state pension age. Two years later, some 42% of new mortgages had this end date during retirement, suggesting a rise in popularity of longer-term loans. Across the final quarters of all three years, nearly 300,000 new mortgages were in this category. Average two and five-year fixed mortgage rates with a two-year average now at 5. 93% and a five-year average at 5. 5%. A considerable amount can change in homeowners' financial prospects during their working lives. A longer-term mortgage may be replaced by a shorter-term one as someone's income rises, or they find other ways to pay off their mortgage. However, the pressure on young homeowners is clear with a sharp rise in the proportion of mortgages that run beyond pension age. The number of homeowners aged under 30 taking out such mortgages more than doubled over the two-year period, while for those aged under 40 the number was up 30%. Meanwhile, older age groups saw a decline in such mortgage deals.