More and more mortgage holders may never pay off their debts as loans lasting 40 years are rapidly rising in popularity.
Traditionally mortgages have lasted for around 25 years, but demand for longer-term deals has grown substantially since the financial crisis.
Taking your mortgage over a longer term lets you lower your monthly outgoings and gain access to larger loans - even with stricter borrowing rules limiting how much you can afford to borrow.
Now lenders are increasingly catering to borrowers who need to take a longer mortgage in order to be able to afford to buy.
The latest data from financial experts Moneyfacts shows that six in 10 mortgage deals now come with a standard maximum term of 40 years.
At the same time, lenders have been extending their maximum age limits. Many borrowers on deals available today will not have to pay off their mortgages until they are in their eighties.
The number of mortgage borrowers taking on longer-term deals has rocketed since 2007
This gives borrowers access to larger loans, as lower monthly repayments mean lenders' affordability rules are easier to pass.
Andrew Montlake from mortgage brokers Coreco said: 'With people working and living longer we are seeing more demand from clients to take out their mortgage on as long a term as possible.
'Despite the fact that over the longer term they will pay more interest, first-time buyers especially like to be cautious and the longer-term allows them to keep their mortgage payments lower for longer.'
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Why are more people taking out long-term loans?
House price growth has outstripped wage growth in the 11 years since the crash, but this may not be the only reason borrowers are opting to stretch their deals out for longer.
| First six months | 20 to 25 Years | 25 to 30 Years | 30 to 35 Years |
| 2007 | 48% | 22% | 16% |
| 2008 | 42% | 22% | 17% |
| 2009 | 44% | 20% | 17% |
| 2010 | 43% | 22% | 18% |
| 2011 | 38% | 24% | 21% |
| 2012 | 36% | 25% | 22% |
| 2013 | 37% | 25% | 21% |
| 2014 | 34% | 26% | 25% |
| 2015 | 30% | 27% | 27% |
| 2016 | 27% | 28% | 29% |
| 2017 | 25% | 27% | 31% |
| 2018 | 23% | 27% | 33% |
| 2019 | 22% | 26% | 36% |
| Source: UK Finance | |||
Research by Yorkshire Building Society, which is the latest lender to extend its term lengths to 40 years, suggests the growing demand for more affordable monthly payments might be driven by first-time buyers, who are buying larger and/or more expensive homes than they did 10 years ago.
The building society said that an increasing number of borrowers are setting their sights on larger, detached homes, while more traditional starter homes of the past are being overlooked.
As a result, the proportion of 30 to 35 year mortgage terms taken out by first-time buyers has grown from 16 per cent in 2007 to 36 per cent today, while the proportion of mortgages lasting between 20 and 25 years has dropped from nearly half of all deals taken to just one in five.
Yorkshire Building Society's Charles Mungroo said: 'Attitudes of first-time buyers are altering, with an increased demand for larger homes compared to the traditional 'starter home' that was once standard to get on the property ladder.
'Along with more purchases being made later in life and families having to juggle multiple financial commitments, there is a real demand in borrowers wanting to stretch their terms to make their monthly payments more affordable along with borrowing later into life.'
But is it a good idea?
Stretching out a mortgage drops monthly repayments, reducing outgoings and lets the borrower qualify for a larger loan, but it does have some significant downsides too.
The biggest is the added cost the borrower will incur over the life of the loan as the longer you have a mortgage, the more interest you will have to pay.
First-time buyers are increasingly going for larger homes rather than traditional starter homes
The average two-year fixed rate mortgage at 60 per cent loan-to-value is currently 1.80 per cent.
Taken over 25 years, the monthly repayments on a £200,000 mortgage would be £828, while the monthly repayments if it was taken over 40 years would be just £585, some £243 cheaper each month.
However, over the lifetime of the mortgage the borrower on the latter would pay a whopping £32,199 extra in interest.
So while stretching out the loan does lower the monthly costs, it also adds a significant amount to the total amount of interest a borrower pays back.
However, some but not all mortgages allow borrowers to make overpayments each month - usually up to 10 per cent of the mortgage balance a year.
On a longer term mortgage, this can have the same effect as shortening the term - it can help clear your loan more quickly and you'll end up paying much less in interest.
For some, taking a longer-term loan but making regular overpayments could be the most flexible option.
Not all deals allow for this facility and you'll have to check whether or not yours does. Speaking to an independent financial adviser can help you decide what is best for you.
Moneyfacts's Darren Cook added: 'The longer a borrower extends their mortgage term, the older they will be when they have finally repaid their mortgage.
'An extended mortgage term may go beyond pension age, so it is imperative that these borrowers consider their options and attempt to make provisions if their personal circ*mstances change.'
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