Marathon Mortgages: The NEW UK Property Trend

The path to homeownership is exhilarating yet demanding, especially with the shifting financial landscape. Recent data shows a rising trend among young UK homeowners opting for "marathon mortgages", extending repayment to 35 years or more to lower monthly payments.

Experian’s analysis reveals that 25% of new homeowners aged 29 and under, from January to March 2023, chose repayment terms of at least 35 years. This contrasts with the 10% recorded in January 2020. At Avocado we think this makes sense, buyers want month affordability and people are also living plus working longer in life too.

 UK Finance reported that 19% of loans taken out by first-time buyers in March 2023 had terms of 35 years or longer, showcasing a significant shift in borrowing trends since 2020. More data confirming the point.

Recent rate cuts by the Bank of England have prompted a slight dip in mortgage rates, with the average new five-year fixed mortgage rate falling below 6%. The market now offers several “best-buy” five-year fixed-rate deals below 5%, though these often require a large deposit or come with high fees.  We can put you in contact with a mortgage broker here if needed.

As banks compete to attract customers with more rate cuts expected, the ‘marathon mortgage’ trend reflects the dynamic mortgage market. Good mortgage advisers are becoming more and more important to buyers.  Their advice is in some cases the difference between getting a property or not.

Wondering if marathon mortgages will help your re-mortgage or property purchase plans?

Contact us at avocado property and we will set you up with a recommended mortgage broker who we trust to help.