The actual number of people paying into their retirement could be far higher because the UK Finance figures are based on the number of mortgages, but two or more people could be on the loan.Expert housing market analyst Neal Hudson toldthat this shift towards longer mortgages could mean that “people are paying more interest for longer and spending more on housing costs in older age when they could be saving.
Mr Hudson added that this could be a “drag” on Britain’s economy in years to come because homeowners will have less “disposable income”, due to mortgage repayments. “I’ll be repaying it until I’m 70,” he said over the phone. “That makes me feel nervous and I’m worried about what happens if house prices plateau or drop, but I’m putting it out of my mind because I’ve got three kids – we need a family home and [lengthening the mortgage term] is the only way we can make it affordable.”
“We’re taking on a massive financial commitment for the rest of our lives for an asset that we may not fully own at the end,” Mr Torrance added. “And yet, I’m aware that we’re some of the lucky ones, actually able to get on the property ladder and have a place that is ours.”
Nearly 830,000 mortgage holders could be paying off their home loans in older age and into retirement against a backdrop of record high house prices 🖊️ Victoria_Spratt