Longer and later mortgages

A new backdrop to the property landscape!

Millions of people could still be paying off mortgages when they are pensioners, experts believe, as spiralling property prices force first-time buyers to postpone their purchases and fund them over longer periods.

The trend for longer and later mortgages comes against a backdrop of fewer people climbing on to the property ladder. Home ownership in England fell last year for the first time since the 1950s, as fewer people took out mortgages to buy properties, according to the Department for Communities and Local Government. Meanwhile, the number of households that rent their homes increased by more than 1m between 1996 and 2006.

The likely driving factor behind the reduction is affordability and people buying later in life because they have to. Falling ownership may also in part reflect the changing lifestyle choices of younger people.

Reacting to these socio-economic shifts, banks and building societies are adapting their offerings to allow people to take out mortgages later in life or to spread the costs over longer periods.

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YOUR HOME MAY BE REPOSSESSD IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Article date: 08.07