Anxiety and Financial Strain: The Mortgage Chokehold on 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 expected to be past state pension age by the end of their mortgage term. This trend is causing anxiety levels to skyrocket among old-age Britons who are facing the prospect of having to work past their retirement age to pay off their mortgages.

One homeowner from Hove shared her concerns, stating that despite having a healthy deposit for her flat, she will still be paying off her mortgage until she is 75. Another individual, Stephen Eblet, a 62-year-old self-employed plumber, expressed his worries about having to work past his pension age due to his mortgage obligations and health concerns.

While some homeowners are planning to downsize or hoping for interest rate falls to shorten their mortgage terms, others are feeling the pressure of high interest rates and the need to work longer to settle their debts. Gerard Boon, managing director of online mortgage broker Boon Brokers, noted that more clients are now considering working until 70 or even 75 to pay off their mortgages, leading some lenders to raise the age cap on their mortgage products.

It is essential for homeowners to be aware of lenders’ rules around retirement age and mortgage repayment limits, as individual circumstances such as income, employment status, and credit history will also impact eligibility for mortgage lending. As the mortgage chokehold tightens for many old-age Britons, it is crucial for individuals to carefully consider their financial options and seek advice on how to manage their mortgage obligations effectively.