According to a new study, one in seven UK homeowners say they will still be paying off their mortgage at the age of 70. Reporting on the study of 700 people aged between 18 and 64 from Aegon, The Scotsman newspaper shared the following figures:
- 14% of those surveyed were expecting still to be making payments on their home at retirement age;
- over 40% said it is likely they will still be renting at 70.
The reasons behind these figures were cited as:
- a combination of homeowners getting on the housing ladder;
- higher house prices; and
- longer borrowing terms.
A spokesperson from Aegon said: “Paying off your mortgage in time for your 70th birthday is now far from a given. Inflated property prices mean those getting onto the property ladder are doing so at later ages and are borrowing more for longer. Those left with an outstanding mortgage on their property face the prospect of either budgeting mortgage payments into their retirement or alternatively continuing to work.
“We know that one in four people expect to still be working at 70, but not everyone will be fit enough or want to do so.”
He also said that with younger generations increasingly failing to get onto the property ladder, renting a home becomes the long-term plan, adding: “As our population ages, we need to look creatively at how to join up employment, pension and housing policies.”