The Mortgage Chokehold: Anxiety Levels Rising for Old-Age Britons

In a recent report by the Bank of England, it was revealed that nearly half of all mortgages issued in the last quarter of 2023 were for 30 years or longer, with two in five borrowers set to be past state pension age by the end of their mortgage term. This trend is leaving many old-age Britons feeling the pressure of a mortgage chokehold, forcing them to work past their retirement age just to make ends meet.

One homeowner from Hove shared her story of having to work until she is 75 to pay off her mortgage, despite having a healthy deposit. Another individual, Stephen Eblet, expressed his anxiety about having to work past his pension age to cover his mortgage payments, especially as a manual laborer with health concerns.

While some homeowners are planning to downsize or rely on inheritance to pay off their mortgages sooner, the reality is that many are facing high interest rates and longer mortgage terms that are stretching their finances well into their retirement years. Mortgage broker Gerard Boon noted that more clients are now considering working until 70 or even 75 to settle their debts, as lenders are adjusting their age caps on mortgages accordingly.

As the mortgage chokehold tightens for old-age Britons, it’s important for homeowners to explore all options available to them, such as shortening their mortgage terms or refinancing to reduce the amount of interest paid over time. With different lenders having varying rules around retirement age and mortgage repayment, it’s crucial for individuals to carefully consider their financial situation and plan accordingly to avoid being caught in a mortgage trap in their later years.