A significant increase in over-50s searching for re-mortgage deals with terms that will carry them close to or into retirement has been recorded by a mortgage services provider.

The data was taken from Legal & General Mortgage Services’ Ignite platform, which is used by brokers to source mortgage product information.

Searches for 21 to 25-year terms among the over-50s climbed by 83% in the first quarter of 2024, when compared with the same period a year earlier.

On average, in the first quarter of 2024, those aged 50-plus who were looking to re-mortgage owed £217,065.

Average loan amounts have increased particularly sharply among re-mortgagers aged 51 to 55 the provider said, jumping by 18.9% from £197,343 in the first quarter of 2023 to £234,716 in the first quarter of 2024.

The number of over-50s looking for mortgages with a 16 to 20-year term jumped by 136% in the first quarter of 2024, compared with the same period a year earlier.

There was also a 156% increase in searches for 10 to 15-year re-mortgage terms among over-50s, over the same period.

Using the Ignite platform, brokers can input specific information about a borrower, which is processed to generate a list of suitable financial mortgage products for that customer’s profile.

The provider has seen a general increase in average re-mortgage loan amounts, which it said reflects the affordability challenges faced by buyers across the sector.

In the first quarter of 2023, the average loan amount searched for by advisers on behalf of all re-mortgage customers was £221,625. This increased to £224,129 in the first quarter of 2024.

Kevin Roberts, managing director, Legal & General Mortgage Services said: “As our data has revealed, there is a significant increase in homeowners aged over 50 looking to re-mortgage on a term that is likely to spill over into their retirement, although how and when people retire looks to be changing.

“In a challenging and dynamic interest rate environment, a large uptick in re-mortgaging requests was perhaps inevitable.

“If interest rates remained low, many homeowners might have stayed put and renewed with their existing lender.”

But he said in a newly competitive market, more people are carefully considering their options “to ensure they can access the best rate possible”.

Mr Roberts said a professional adviser can use their experience and access tools to help borrowers find suitable deals.

Earlier this year, Sir Steve Webb, a former pensions minister who is now a partner at LCP (Lane Clark & Peacock), cautioned that some home buyers could be gambling with their retirement prospects by taking on ultra-long mortgages.

He obtained freedom of information (FOI) data supplied by the Bank of England, showing that 42% of new mortgages in the fourth quarter of 2023 – or 91,394 – had terms going beyond the state pension age.

Emily Shepperd, Financial Conduct Authority (FCA) chief operating officer, previously said in a speech: “Alongside longer terms we also see a greater proportion of mortgages projected to mature around state retirement age. The projected median age of a first-time buyer at maturity is now 65 years old, up from 56 in 2005.

“The proportion of mortgage customers over 67 is currently less than 2% of all loans. By 2040 this rises to 5%, and by 2050 it is almost 10%.

“Lending into retirement is moving from a niche to a norm.”

UK Finance said in June that, in the first quarter of this year, around one in five (21%) new first-time buyers had home loans lasting for more than 35 years.

The trend of longer-term mortgages is “further evidence of the ongoing affordability crunch”, as costs and house prices remain high relative to incomes, UK Finance said.

It added that most first-time buyers typically do not keep their mortgage over the full term because they move house or re-mortgage.

Longer mortgage terms can make monthly payments more affordable, but homeowners could end up paying more in interest over the longer term.

Karina Hutchins, UK Finance principal for mortgage policy, has said previously: “When reviewing new mortgage applications, lenders will act within the responsible lending rules set by the Financial Conduct Authority and carefully consider whether the borrower will be able to afford their mortgage in the future.”

In recent weeks, there have been signs of lenders cutting their mortgage rates, amid expectations that the Bank of England base rate will be cut at some point soon.

Last week, Nationwide Building Society reintroduced sub-4% fixed mortgage rates, in further signs of competition in the market heating up.