A new survey from a major insurer shows that 14% of people think they will still be paying their mortgage at age 701.
Not so long ago, mortgages were likely to be for 25 years, and homebuyers would often be aged in their 20s when they took them out. However, times have changed. Many people are getting on the housing ladder later and house prices are higher. This has led to lenders regularly granting mortgages for much longer terms. This means that one in seven people could expect to be repaying their mortgage into what would normally be considered their retirement years.
If this trend continues, many people will need to factor mortgage repayments into their retirement planning and may even have to consider working past their normal retirement date to cover the cost. Whilst some may wish to stay active in the workplace for longer, not everyone will want to face this prospect.
If you’d like to consider your mortgage options as part of your retirement planning, do get in touch.
1 Aegon, 2018
Your home or property may be repossessed if you do not keep up repayments on your mortgage.