More than one in three new mortgages being taken out today will extend beyond the borrower’s 65th birthday, the Council of Mortgage Lenders (CML) has said.
Lengthening mortgage terms and the older age at which people are managing to climb on to the property ladder mean that nearly 35% of new home loans are not expected to be paid until the borrower has passed the nominal retirement age of 65, the CML said in an article on its website.
It said that in recent times, a growing proportion of mortgages extending beyond the age of 65 have been taken out by home movers, now accounting for around half the total.
But the number of first-time buyers taking out mortgages that will mature beyond the age of 65 has also been edging upwards, and accounted for 21% of the total in the fourth quarter of 2014, the CML said.
An increase in the proportion of first-time buyers who are taking out longer mortgage repayment terms is contributing to the trend of people getting a loan which will last into an age when many people would be thinking about putting their feet up.
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