Younger borrowers becoming ‘Mort-locked generation’ - claim

One in four mortgages lent to those under 30 now have a term of 35 years or more, new research suggests.

This is up from one in 10 in 2020, an increase of 150%.  

The increased cost of borrowing means that many people will be nearing retirement before they’re able to fully pay back their mortgage loan. 

This group of under 30s who have agreed to such lengthy repayment terms are now becoming known as the “Mort-locked generation,” said credit report agency Experian which conducted the research.

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. 

It suggests many people 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. 

Mortgage applications for first time buyers were also down 19% annually.

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. A credit score can impact everything from your eligibility to your repayment terms, as it acts as a financial track record for lenders looking to see how reliable you are. Building a good score and credit history will stand you in good stead for the future.”