In 2023, 70.73% of mortgage searches on the platform were for terms of 25 years and over - with only 29.27% looking for under 25 years.
In 2021, Habito launched a 40-year fixed rate mortgage, bringing longer mortgages into the public eye - which Twenty7tec say is reflected in the increased demand.
When comparing 2021/2022 to 2022/2023, Twenty7tec found that purchase mortgage demand (for all but first-time buyers) for 40 years or more rose by 16.45%, while all other search term demand dipped. First-time buyers saw the most significant rise in 40 years or more searches - which were up 43.75%.
Nathan Reilly, Director of Twenty7tec, says:
“What’s perhaps most interesting about these figures is that the biggest rise is for remortgage searches as this group will have already had a term for at least two years, and they are seeking long-term mortgages as an option to bring payments down.
“Will this be a continued change in 2024? Time will tell, but the data certainly points in that direction. House buyers are actively seeking ways to bring their monthly payments down as other payments soar, and extended terms may be one way to do that. However, longer-term mortgages can also increase the total debt size and take far longer for house buyers to pay it off, leaving some unable to be mortgage-free until they’re retired.”
