Elliot Benson, an adviser at Sett Mortgages, said many of his clients have taken out 40-year mortgage terms.
He said: “The reasoning being it can make the monthly payments that bit more affordable to fit into a monthly budget.
“If 40 years is going to take someone past their chosen retirement age, then this will be a problem for the lender.
“But what we need to remember is you are fixed to the interest rate fix period, not the term. Most people are going to move two or three times, and each time the mortgage is going to be re-structured.”
“The chances of someone taking a 40 year term and actually spending 40 years in a house with that mortgage are very low.”
“We want to clear this debt before retirement”
Sam Drewery, 29, and his wife, 28, borrowed £820,000 at an interest rate of 5.9pc fixed for two years. They put down a 15pc deposit of around £145,000.
Before they married, the two bought a £310,000 new build in 2017 with Help to Buy. Mr Drewery, who works in investment banking, said it was an expensive flat at the time – even though their interest rate was just 1.4pc.
Now looking to start a family, the two signed up to a 40-year mortgage so they could move into the bigger house they had envisioned before the mini-Budget chaos.
Mr Drewery said: “Because of my job, I’m always trying to model things. I had it in my head that we’d be able to afford £1.3m or £1.4m. But then rates jumped and suddenly – overnight – on the same shorter term with 6pc rates our affordability was wiped out.”
He worked out that their new monthly repayment – £4,454 – would have afforded them a £1.6m home before rates shot up.
Mr Drewery said: “I felt like I had my hand forced. But I appreciate that I’m in a fortunate position, and that I can overpay the mortgage.”
His plan is to make early repayments. He said: “I plan to pay it off early – over the next 15 years. I want to clear it by the time I retire in my early to mid-50s.”
Most banks offer a 10pc overpayment allowance each year, but some – such as NatWest – increased it this year to 20pc.
Borrowers making lump sum overpayments in excess of £1,000 can cut down their monthly mortgage repayments in one fell swoop.
Ross Lacey, director at financial advice firm FairView, said most lenders will generally lend until the eldest applicant’s 70th birthday – and that some may even go further than this.
He added: “This assumes the occupations and type of work they do is viable to do at this age.”
“I’ll keep repayments the same and lower the term”
Zack St John-Clarke, 27, is adjusting from a double income after splitting with his ex – who he previously took out a 35-year mortgage term with.
He took out a £166,000 mortgage to afford his Norfolk-based flat which he is paying back at an interest rate of 5.14pc. This means his repayments amount to £816 a month.
