Once upon a time, Britons hoped to be rid of their mortgages sometime in their fifties, ahead of a smooth path to retirement. That increasingly looks like a fantasy.
A freedom of information request by former pensions minister Steve Webb has revealed that an increasing number of young people are going to be worrying about making repayments into their dotage.
Webb, now a partner with pension consultant Lane Clark & Peacock, sought to track the proportion of new mortgages beyond the state retirement age, currently 66, in the wake of the recent publication of the Bank of England’s financial policy report. It showed that 42 per cent of new mortgages in the final three months of 2023 were like this. Webb’s FOI found that compares to less than a third (31 per cent) in the fourth quarter of 2021.
He also found that there were nearly 300,000 home loans of this type advanced in the final quarters of 2021, 2022, and 2023 combined. Given where the housing market is after 14 consecutive interest rate rises, it is quite possible that this sort of loan will become the rule not the exception in the near future.
It isn’t only first-time buyers who are affected. Many existing property owners have extended the terms of their loans to cope with the sharp rise in bills they faced when cheap fixed-rate mortgage deals, taken out during the time of rock bottom interest rates, expired.
هذه القصة مأخوذة من طبعة May 14, 2024 من The Independent.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة May 14, 2024 من The Independent.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Championship shopping over Champions League
Chelsea manager contender Enzo Maresca excelled with Leicester but his lack of top-flight experience is a big risk
Djokovic secures second round slot at French Open
On Monday, as the sold-out crowd roared on Rafael Nadal in potentially his final battle on Court Philippe-Chatrier, Novak Djokovic was in an unusual position. For him, anyway.
Britons crash out of French Open as focus turns to grass
After a three-day opening salvo at Roland Garros, there are no Brits left standing.
'Atlas' is a flat, misguided love letter to the algorithm
Netflix's sci-fi flick sees J-Lo's techno-sceptic learn about the beauty of AI. With concerns about the technology growing, Louis Chilton wonders how the film reads the room so badly
SZA will save your summer
With Grammys, a Brit and bags of banging hits, if you don't know the surprise Glastonbury headliner then it's time to get familiar. Thankfully, Kate Solomon has all the info you need
DRINK GREEN
Sarah Finley tries out health-boosting supplement powders
Let's get down to business: the best way to book flights
Q I travel a fair amount for work. My company insists we book through a business travel agent, even though – as I frequently point out to my manager – it can cost more than just booking directly.
Are you going my T'Way?
T'Way Air promises 'sophisticated service' at a 'reasonable price' but Simon Calder finds the two mutually exclusive
We shouldn't shy away from rape scenes – they are vital -
The actor and writer Doon Mackichan was wrong to call out all depictions of sexual violence in drama, says Olivia Petter. When done right, they can be educational and lifesaving
Being busy at work doesn't mean you are productive
In her regular column, business founder and wellness expert Nicola Elliott looks to make our nine-to-five feel healthier