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DT: Pensioner mortgages boom in Britain's broken housing market


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HOLA441

Apologies if this is already posted. In that case, Mods, please delete/merge.

Telegraph: Pensioner mortgages boom in Britain's broken housing market

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It’s the latest trend in Britain’s dysfunctional housing market: the rise of the mortgaged pensioner.

Higher house prices push back the age at which families buy or move up the ladder, meaning millions of borrowers now have loans that will extend into retirement.

In 2006, a quarter of new mortgages went on beyond the age of 65. Today the figure is almost 40pc. But this number is artificially low, mortgage experts say, because tough new rules introduced after the 2008-09 financial crisis limited lending to older homeowners.

There is now “enormous” pent-up demand for mortgages that stretch into borrowers’ 70s, 80s and even 90s, lenders say – and deals are becoming increasingly available.

 

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HOLA442
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HOLA443

So all the HPI gain made by pensioners goes back into housing for their offspring. Should it be called a gain then?

What is the incentive for younger generation to have a good education, career, mortgage, housing, starting a family?

No wonder minimalism is on rise.

Edited by Fairyland
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6 minutes ago, interestrateripoff said:

So people finish off paying the mortgage in retirement and then release equity to fund the retirement giving the house back to the financiers.  Genius system.

For the financiers it is.....

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HOLA446

...mortgages into 70s, 80s and 90s?  Presumably they are retired public sector workers on generous unsustainable state sponsored pensions to pull this off?  Or have absurdly generous final salary pensions in the private sector...all funded by taxes and contributions paid by the younger economically active today.

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