Mortgage misery for millions forced to keep up payments long into retirement

MILLIONS of homeowners face paying "marathon mortgages" stretching into retirement because of high interest rates, experts have warned.

- Steph Spyro

People are being urged to avoid excessive borrowing or risk their retirement finances being "stretched to breaking point".

Extended mortgages have become popular with just over two in five gained between April to June having terms which run past pension age.

This compares with barely three in 10 in the last three months of 2021.

Former pensions minister Steve Webb, a partner at consultants LCP, said: "Many people look forward to retirement as a time when the mortgage is paid off and they can relax and enjoy more free time with family and friends.

"But for a rapidly growing number of people, the prospect of a mortgage-free retirement is looking much less likely.

"With houses becoming increasingly unaffordable for the young in particular, it is understandable that more are reducing their monthly payments by taking out a loan stretching decades into the future.

Entrenched

"But the worry is what this will mean for their standard of living in retirement." He said there was increasing evidence that the ultra-long mortgage trend was now "entrenched" rather than a "temporary blip".