Charles Roe, Director of Mortgages at UK Finance, commented on the results: “There’s been growing demand for mortgages from those aged over 55 and this is set to continue as more people live and work for longer.
“For the first time since records began more than half of all new mortgages are due to end after the homeowner’s 65th birthday, and lending to over 55s has grown even where mortgage lending in the wider market has remained subdued. Later life lending both now and in the future will be imperative as existing homeowners look to later life products for accessing equity as they get older.”
Becky O’Connor, the Head of Pensions and Savings at interactive investor, broke down just how costly this could be for retirees.
“Not only is the dream of retirement under threat but also the dream of mortgage freedom,” she said.
“The two go hand in hand – having enough pension income to retire well is usually dependent on having paid off the mortgage, leaving your pension pot free to cover other living costs when you give up work.
“The trend of mortgages that last into retirement means people need to invest even more into their pensions if they still want to be able to give up work and continue to meet housing costs.”