Most of us think our retirement years will be a time to unwind after decades of hard work, but for an increasing number of mortgage holders, this peaceful vision is slipping away. Many find themselves compelled to work beyond pension age to pay off longer-term mortgages.
The recent spike in interest rates has exacerbated this issue, pushing mortgage rates to highs that haven’t been seen for many years. Homeowners who have taken on mortgages or remortgaged in the past year are likely to have seen their monthly payments soar.
Recent freedom of information data from the Financial Conduct Authority (FCA), gathered by Quilter, revealed that two fifths (40%) of all mortgages issued in the last three months of 2023 had terms of more than 25 years.
For some, a mortgage which is longer than the traditional 25 years could be an ideal way to get onto the housing ladder. Longer mortgage periods allow potential homeowners to borrow larger sums, which should allow access to a greater variety of available homes, but it should be remembered that you are likely to end up paying more in interest overall.
Come and talk to us and we can advise you on the most suitable option for your circumstances.
🚨 Data accurate as of the date of publication – 09.08.20245
🚨Information within this blog is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed.
🚨Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q3 2024
