Mortgages: More people face repaying loans in retirement

Published On Nov 30, 2024, 8:33 PM

The article discusses the rising trend of ultra-long mortgages in the UK, with over a million mortgages issued that extend payments into retirement. As homebuyers opt for extended terms due to high interest rates, experts express concerns about the financial implications for retirement planning. Although the practice has become more common, only a small fraction of these mortgages may ultimately burden borrowers into their retirement years, as future income growth could lead to borrowers opting for shorter terms. Lenders impose age limits and affordability checks on these loans, but many individuals still find obtaining mortgages to be a challenge amid rising financial pressures.