Jump to content
House Price Crash Forum
Sign in to follow this  
Sancho Panza

One In Three Will Still Be Paying Mortgages In Their 60S

Recommended Posts

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

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

My plan is to buy before 50 and have no mortgage from day one. sorted.

Share this post


Link to post
Share on other sites

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. ;)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.