One in three homeowners with a mortgage is unsure if they will be debt-free by the time they retire or have even rolled the possibility out, according to a survey.
This Is Money reports that the survey, carried out by the Equity Release Council, found that borrowers’ lack of certainty about being mortgage-free in retirement follows findings that half of the mortgaged homeowners under the age of 40 got onto the property ladder much later than expected, compared to 29 per cent of those aged over 40.
The survey found that borrowers who expect to be still paying their mortgage in retirement have a more relaxed attitude about their debt than the previous germination, with almost a quarter of mortgaged homeowners saying they didn’t mind still paying off their debt later on in life.
Some 70 per cent of mortgaged homeowners felt comfortable with their current level of mortgage debt, rising to 75 per cent of those aged 50 and over.
Many respondents said that they felt that taking out a mortgage later in life would be of benefit to them, as 30 per cent saw it as a means to help improve their lifestyles, and 31 per cent saw it as a way to access funds to help out family members.
However, 67 per cent of mortgaged homeowners did not think financial service providers were getting better at offering mortgages to people in retirement.
Over a third (36 per cent) said that they felt there was a need for clear consumer information, as they feel confused about what mortgages were available to people later on in life. This figure was higher for the under-40s.
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