More people paying off mortgage after retirement age

May 4, 2016 by Brendan O'Neill

Home owners

Around a third of people buying a property face paying their mortgage until well after retirement age. This is a contrast to just a few years ago, where people planned for their retirement knowing that they would have paid off their mortgage and leaving them to enjoy life post-employment.

Many people aged between 20 and 45 believe that they will have to work for longer just so they can pay off their mortgage, while others worry that they will never be able to get onto the property ladder in the first place.

Over half the people surveyed in the Generation Rent, a report produced by the Halifax, have expressed concerns about saving for their retirement, while 40% worry about paying their mortgage after retirement.

As it is harder than ever to save a deposit to buy a home, more people are buying their first property over the age of 30. This is causing anxiety about finances in the future, as many expect to be paying their mortgage well after retirement. However, despite the concerns, more people are wanting to buy their own home rather than spend money on renting a property.

There are a number of ways a person can be mortgage free by the age of 60. The most popular solution is to buy jointly with someone else, often a choice for younger buyers who are settling down together.

Applying for a mortgage with a longer term is also a method used to make a mortgage more affordable, although this will cost more in the long run. Mortgage advisers who are CeMAP trained have the necessary information to help borrowers find the most suitable mortgage for their circumstances.