One-fifth of first-time buyers taking out mortgages of more than 35 years in order to get onto the housing ladder, according to UK Finance.

In its Household Finance Review Q3 report, the banking and financial services trade association revealed the lengths many are going to in order to afford a home amid higher borrowing costs. The number of first-time buyers taking out over 35-year mortgages jumped to 20% in September, rising from just 13% in September 2022.

According to the review, the number of first-time buyers that have taken out 30-to-35-year mortgages stood at 36% in August and September, down from 37% in comparison to the previous year. Both 30-to-35-year and over 35-year mortgage take ups jumped dramatically amongst first-time buyers since records began in April 2005, where they stood at 5% and 2% respectively.

Overall, 56% of all first-time buyers in September 2023 took out a mortgage of over 30 years, with 33% of movers taking out over 30-year mortgages. Lending to both first-time buyers and movers has fallen year-on-year in every month since December 2022.

The report also found that 9% of movers chose loans with terms of more than 35 years, while the number of first-time buyers opting for loans over 35 years has more than doubled since the Bank of England started raising interest rates in December 2021, from 9%.

James Tatch, head of analytics at UK Finance, said: “Rising interest rates and cost of living pressures, combined with high house prices have meant that buyers are looking for ways to stretch their affordability.

“Against this backdrop the proportion of first-time buyers who took out longer-term mortgages has crept up through 2023, although this trend looks to be moderating.”