Charles Roe, Director of Mortgages at UK Finance, commented on the results: “There has been an increasing demand for mortgages from people over 55 and this is expected to continue as more and more people live. and work longer.
“For the first time since the record started, more than half of all new mortgages are due to end after the owner’s 65th birthday, and loans to over 55s have increased even where mortgages have hit the market. in the broad sense have remained moderate. Later life loans, now and in the future, will be imperative as current homeowners look to products later in life for access to equity as they age. “
Becky O’Connor, head of pensions and savings at Interactive Investor, explained how costly this could be for retirees.
“Not only is the dream of retirement threatened, but also the dream of mortgage freedom,” she said.
“The two go hand in hand – having enough retirement income to retire well usually depends on paying off the mortgage, leaving your pension fund free to cover other living expenses when you stop working.
“The trend of mortgages lasting until retirement means that people have to invest even more in their pensions if they are still to be able to quit their jobs and continue to face housing costs.”