The age of becoming mortgage free in the UK now averages more than a decade older than a generation ago.
According to research from Post Office Mortgages, over a third of homeowners here expect to be well into their 60’s before paying their mortgage off in full, compared to a generation ago when the average age was 51 years old.
High house prices and the challenge of saving for a deposit have also meant that many homeowners are making the first step on the property ladder much later than their parents did – taking out their first mortgage at an average age of 33.
Other homeowners are pushing back outright ownership by remortgaging and using the equity in their home to fund other expenditures, the survey revealed. Nearly one fifth (18 per cent) stated that they have remortgaged to improve their current house or buy a second home, while a further one in 12 (8 per cent) have done so to support their children.
One in eight (12 per cent) are sure they will not be able to keep to their current mortgage term, while a further 14 per cent are sweating over meeting their mortgage terms.
However, the dream of owning our own homes outright remains as strong as ever – with four in five (79 per cent) saying this is something they wish to achieve.
John Willcock, Head of Post Office Mortgages, said: “One of the major financial changes that has occurred over recent generations is when we might get to pay off our mortgage.
“Whereas older generations have often lived mortgage-free for decades, for younger homeowners, who are getting onto the housing ladder in their thirties, the end of a mortgage is now being delayed.
“For many, the flexibility that remortgaging offers means they often use their mortgage to invest in additional properties or improve their current home – again pushing the age up.
“Wider societal trends, such as multi-generational living, higher divorce rates, and the need to pay for university fees are also having an impact and pushing back the age at which we might finally be able to say we truly ‘own’ our homes.“
Three quarters (75 per cent) of homeowners said they expect to pay off their mortgage in line with their original mortgage term, which on average is 22 years. And for those who have been able to pay off their mortgage already, the average time it took was 17 years.
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