Long-term mortgages <\/strong>that extend well into retirement age are putting a strain on the finances of millions of Britons. Experts caution that more than 100,000<\/strong> people who are 36 years<\/strong> of age or older have taken out mortgages that are 35 years or longer, posing possible financial difficulties in later life.<\/p>\n\n\n\n
Many people are adopting longer repayment terms as a result of increased interest rates and housing costs. Although this strategy <\/strong>reduces short-term financial strains, it also poses serious long-term problems, especially for people who are approaching retirement and have unpaid obligations.<\/p>\n\n\n\n
The percentage of senior borrowers taking out long-term mortgages <\/a>has sharply increased, according to data from asset management company Quilter. More than 100,000<\/strong> people who were 36 years of age or older applied for mortgages with periods of 35 years or longer between 2018 and 2024<\/strong>. Due in large part to economic pressures and rising real estate costs<\/a>, the numbers increased between 2020 and 2024<\/strong>.<\/p>\n\n\n\n
The implications of extended mortgages extend beyond affordability <\/strong>during working years. Former pensions <\/a>minister Steve Webb<\/strong> has raised concerns about the broader financial impact of this trend. He noted, \u201cWe already know that millions of people are not saving enough for their retirement, and if some of that limited retirement saving has to be used to clear a mortgage balance at retirement, they will be at even greater risk of poverty in old age.\u201d<\/p>\n\n\n\n
As more Britons take out longer mortgage terms, experts emphasize how important thorough financial preparation<\/strong> is. Prospective purchasers must to thoroughly assess their long-term financial objectives <\/strong>and take into account the potential effects of mortgage commitments on their retirement. <\/p>\n\n\n\n
To guarantee that borrowers <\/strong>are not unintentionally committing themselves to financial instability, legislators and lenders are being pushed to offer more precise guidelines and protections.<\/p>\n","protected":false},"excerpt":{"rendered":"
Thousands of Britons are turning to 35-year mortgages as soaring housing costs and interest rates strain affordability. While this eases short-term pressures, experts warn of significant risks for those nearing retirement, with debts lingering well into their 70s. The implications could reshape financial stability for many.<\/p>\n","protected":false},"author":10,"featured_media":102334,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,45],"tags":[],"class_list":["post-102332","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing","category-retirement","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/102332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=102332"}],"version-history":[{"count":3,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/102332\/revisions"}],"predecessor-version":[{"id":102351,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/102332\/revisions\/102351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/102334"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=102332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=102332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=102332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}