Sancho Panza Posted July 17, 2013 Share Posted July 17, 2013 Telegraph ' One in three Britons expects to still be paying their mortgage in their 60s, a study has suggested. It compared this with the generation before, which cleared mortgages at an average age of "51". The study said high house prices and the associated problem with saving for a deposit means many homeowners are making the first step on the property ladder much later than their parents did – taking out their first mortgage at an average age of 33. But the industry is also gearing up to cater for those still with high debts and approaching retirement age. Last week a lender, National Counties, launched a mortgage that could be taken by borrowers up to the age of 80. The Financial Services Authority, which was recently replaced by the Financial Conduct Authority, has previously warned about the mortgage debts owed by those in their fifties. It is particularly concerned about the number of borrowers who have interest-only mortgages and no means to repay them when the loan ends. ' Mortgage Introducer 'First time buyer average age is now 37' It seems quite safe to suggest as well that the predominance of interest only mortgages will occur at the lower end of buying chain ie those who purchased post 2003.Thus as those who bought pre 2002 start becoming mortgage free circa 2020 on,then the debt profile of those still with mortgages will worsen considerably Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted July 17, 2013 Share Posted July 17, 2013 Telegraph ' One in three Britons expects to still be paying their mortgage in their 60s, a study has suggested. It compared this with the generation before, which cleared mortgages at an average age of "51". The study said high house prices and the associated problem with saving for a deposit means many homeowners are making the first step on the property ladder much later than their parents did – taking out their first mortgage at an average age of 33. But the industry is also gearing up to cater for those still with high debts and approaching retirement age. Last week a lender, National Counties, launched a mortgage that could be taken by borrowers up to the age of 80. The Financial Services Authority, which was recently replaced by the Financial Conduct Authority, has previously warned about the mortgage debts owed by those in their fifties. It is particularly concerned about the number of borrowers who have interest-only mortgages and no means to repay them when the loan ends. ' Mortgage Introducer 'First time buyer average age is now 37' It seems quite safe to suggest as well that the predominance of interest only mortgages will occur at the lower end of buying chain ie those who purchased post 2003.Thus as those who bought pre 2002 start becoming mortgage free circa 2020 on,then the debt profile of those still with mortgages will worsen considerably With SMI for life for those in receipt of pension credit, a mortgage for skint oldies on I/O seems about as risk free as it gets. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 17, 2013 Share Posted July 17, 2013 again, the stupid press use average as a headline...clearing mortgages at average 51 seems to me just about an impossible average to even calculate....people take multiple mortgages throughout their lives, specially in a fast rising environment as repayments are small and the next rung is further out of reach, either wages increase to cover the extra or "affordability" covers the extra. either way, people now retire at 67 and rising....course, being a public sector High Flier where retirement at 55 is expected with a lifetime pension tracker, this could be a disaster to the entitlement psyche. Quote Link to comment Share on other sites More sharing options...
wherebee Posted July 17, 2013 Share Posted July 17, 2013 My plan is to buy before 50 and have no mortgage from day one. sorted. Quote Link to comment Share on other sites More sharing options...
Si1 Posted July 17, 2013 Share Posted July 17, 2013 And how will this support house prices? Quote Link to comment Share on other sites More sharing options...
winkie Posted July 17, 2013 Share Posted July 17, 2013 The only important figures when buying a house is the price you pay for it, and the price you sell it for against other prices at the time...... all things being equal, after that interest rate is the most important figure to consider. Therefore you buy, you hopefully repay and you pray your house increases in value not decreases.....then you reach a point when instead of ploughing money into your house, you start taking the money you paid into your house out of your house, or start spending your house to supplement your pension income......born with zilch, die with zilch...game over. Quote Link to comment Share on other sites More sharing options...
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