Homeowners may need to use pensions to pay off mortgages into their 70s

Rising property prices mean the next generation of homeowners may be paying off their mortgages into their 70s, new analysis warns. The demand for longer mortgage terms of 35 years instead of the traditional 25 years has jumped 75% as cash strapped owners want to keep their monthly payments low. Coupled with the average age of a first-time buyer (FTB) rising, an increasing number of people could be paying their home loans out of their pensions, according to the analysis of official figures by online mortgage broker Trussle. And the trend could be exacerbated by the current cost of living crisis which is likely to see the age of first-time buyers continue to increase. Trussle said: “This is an alarming trend that has been brewing for years... Our new data shows that the ramifications will reverberate for decades to come.”

Express.co.uk