Almost half of all new mortgages taken out in the final three months of last year were for 30-year terms or more, raising the risk that borrowers will remain saddled with debts at retirement age, according to the Bank of England.
Longer mortgages have become increasingly popular as buyers seek to offset the impact of sharply higher interest rates since the end of 2021.
Extending the term of a deal means the monthly repayments shouldered by borrowers are lower, helping to make home ownership more affordable. However, it also means that mortgage holders will pay more over the lifetime of the loan and might still be paying off their debt in much later life.
Borrowers are more vulnerable in the event of a future financial crisis, the Bank warned
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The Bank said on Wednesday that for 40 per cent of
