Longer term mortgages for UK homeowners
UK homeowners will be taking an increasingly longer time period to pay off the mortgages according to insurer Aviva, formerly known as Norwich Union.
Aviva has stated that an increasing number of mortgage lenders are now offering up to 40 years mortgage terms. At the same time, the average age of a first time buyer is now 34 years old and is forecasted to reach 41 by the year 2039. If this prediction is to be believed, then it is possible that more and more people will be paying off their mortgage at the age of 80.
Head of Annuity Propositions at Aviva’s UK Life, Darren Dicks, commented:
“There is a risk that without forward planning, today’s young adults could end up in a work-to-live cycle for what feels like forever.”
In some countries such as Japan, mortgages are deemed to be family affairs and are passed on through the generations; is it possible that this is the way the UK mortgage market is heading? Many would sincerely hope not.
Posted on June 17, 2009
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