A significant increase in older borrowers choosing longer mortgage terms to manage high monthly payments has been observed. This trend, driven by elevated interest rates, may lead borrowers to still be repaying their loans well into retirement, potentially impacting their quality of life.
The number of older borrowers taking out longer loan terms in the last five years has jumped significantlyNew data shows there has been a 156 per cent increase in the number of older borrowers taking out longer loan terms in the last five years, more than any previous year since 2018.
More people have been turning to extended mortgage repayment periods to bring down their monthly costs while mortgage rates remain high. Justin Moy, managing director at EHF Mortgages, said: “Mortgages are running well into retirement age simply to make any mortgage more affordable whilst mortgage rates are high.
In the first nine months of 2024 alone, 22,103 mortgages with a term of 35 years or more were sold to people over the age of 36, according to Freedom of Information data analysed by Quilter.has made it increasingly difficult for buyers, particularly those entering the market later in life, to afford homes without significantly extending the repayment term,” she said.has risen steadily, and the latest data from Mojo Mortgages suggests it now stands at 33 years and eight months old.
Longer Mortgage Terms High Interest Rates Retirement Planning Affordability Mortgage Repayments
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