iamnumerate Posted September 21, 2021 Share Posted September 21, 2021 https://www.express.co.uk/finance/personalfinance/1493626/mortgage-alert-repayment-debt-calculator-state-pension-age Quote A study undertaken by UK Finance has shown more than half of new mortgage lending is going to borrowers who will not have paid off the loan before their 65th birthday. The trade association stated that in 2021, 52 percent of new homeowner mortgage lending has been taken out under terms which are set to end beyond the borrower’s 65th birthday. Traditionally, state pension age was set at 60 for women and 65 for men, but changed to 65 for both, as part of state pension age parity measures. However, more recently, this has been uprated to 66, with further increases on the horizon for Britons in the future. A bit risky although anyone who is 41 now would have been 20 in 2000 - when prices were already considerably more expensive than in previous years (then it got worse) so there could be reasons for this. Quote Link to comment Share on other sites More sharing options...
winkie Posted September 21, 2021 Share Posted September 21, 2021 (edited) Multi generational mortgages.....leave your outstanding mortgage in your will, passed on to your next of kin.......sorted. Edited September 21, 2021 by winkie Quote Link to comment Share on other sites More sharing options...
scottbeard Posted September 21, 2021 Share Posted September 21, 2021 There's all sorts going on here, I suspect... Firstly, as the article says, if by "extending beyond 65" it means to 66 - the new State Pension Age - that's hardly a problem. Then there's the equity releasers, who deliberately take out a mortgage they expect to die before repaying, and let the bank have their house instead. Then there's the downsizers, who take a mortgage until they're 70 but in practice want to retire age 60 and sell this house and buy a cheaper one for cash. Finally there's the point that young people can't afford houses any more, so not surprising a very large percentage of mortgages are being given to very old people... Quote Link to comment Share on other sites More sharing options...
jans123 Posted September 21, 2021 Share Posted September 21, 2021 This is likely to increase - I read the average age of a FTB now is 39 - is a person takes a mortgage at 39 then moves after say 5-1-0 years to a bigger house that is likely to take the mortgage term in to the 70's. I also guess some of these are parents doing the BOMAD thing. Or taking out a mortgage to get cash in later life in the knowledge that they can pay of from the pension or other investments and still be able to leave a house to the kids? Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted September 21, 2021 Share Posted September 21, 2021 1 hour ago, winkie said: Multi generational mortgages.....leave your outstanding mortgage in your will, passed on to your next of kin.......sorted. It's project fear again. They've been on about those for the last 15 odd years "house prices to the moon, buy now before you're priced out", but I've not heard of anyone getting one. Quote Link to comment Share on other sites More sharing options...
winkie Posted September 21, 2021 Share Posted September 21, 2021 8 minutes ago, Bruce Banner said: It's project fear again. They've been on about those for the last 15 odd years "house prices to the moon, buy now before you're priced out", but I've not heard of anyone getting one. me neither. Quote Link to comment Share on other sites More sharing options...
dugsbody Posted September 21, 2021 Share Posted September 21, 2021 My mortgage ends when I'm 69. Quote Link to comment Share on other sites More sharing options...
jimmy2x3 Posted September 21, 2021 Share Posted September 21, 2021 im passed caring been on this site so long i now feel ive missed the boat. its a nice share account earning dividends for me and a nice council house costing 4k a year and they fix the roof and boiler. i will end up better off than them all paying the banks off to leave it all to ungratefull kids. There are millions now like me, cash rich, house poor but ya know what i reckon we are the ones they will wish they were in the future. Quote Link to comment Share on other sites More sharing options...
markyh Posted September 21, 2021 Share Posted September 21, 2021 6 hours ago, iamnumerate said: https://www.express.co.uk/finance/personalfinance/1493626/mortgage-alert-repayment-debt-calculator-state-pension-age A bit risky although anyone who is 41 now would have been 20 in 2000 - when prices were already considerably more expensive than in previous years (then it got worse) so there could be reasons for this. No one remortgaging now for more than 10 years will be able to fully retire at 65, it's 67 now, so funny enough my last house move in 2016 was for a 20 year mortgage to take me to 67. Quote Link to comment Share on other sites More sharing options...
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