Rise in first-time buyers who will be paying off mortgage in retirement

New figures show that 17% of all new mortgages taken out in December were for terms of 35 years or more, almost double last February's rate, when it was just 9% of home loans. Overall, around 55% of mortgage loans are now taken out for terms of 30 years or more, compared with just 9% in 2005. According to Halifax, the average age of a first-time buyer is now 32 and even older in London, meaning that many borrowers are now on course to still be paying off their home loans in their sixties or even seventies. A spokesman for UK Finance described stretching out mortgage terms as a relatively low-risk option for borrowers to increase their borrowing potential. He added: "It does, however, limit the ability of borrowers to save or invest in other areas - for example their pensions - for a longer period while they are still paying off their mortgage." 

The Sunday Telegraph (05/03/2023)