A recent survey by the Building Societies Association (BSA) has shown that almost half of the UK’s population aged 25 – 34 years old feel they will still be paying their mortgage after they have retired.
Fewer than 30%
worry they may not even get a mortgage, whether due to their age, income or previous credit history.
Paul Broadhead who is the head of mortgage policy at BSA said:
“We are all now living much longer and getting on to the property ladder later in life. Many younger buyers are realising that they may not be able to pay off their mortgage until after they retire.”
Broadhead pointed out that with the average age of a first time buyer increasing, borrowing into retirement is becoming the new norm, rather than a niche form of lending.
He stated that whilst this concern has been voiced by new and potential borrowers, some borrowers now display a degree of flexibility when it comes to taking a mortgage into retirement.
Broadhead concluded that the regulators, the Government and the financial services sector need to review and assess how they could and would deal with the changing environment, as paying the final instalment of your mortgage before you reach 65 is not a reality that many people face.
As a qualified mortgage adviser who has completed and passed their CeMAP training, you will meet with customers and assess their mortgage needs. Working in line with the processes and procedures of your employer and the Financial Conduct Authority, you will be best placed to most suitably advise them.
