One in three people over 60 will still be paying their mortgage

Over a third of homeowners (36 per cent) will be older than they had originally planned by the time they pay off their mortgage, new research from Equifax has found.

The survey, carried out by YouGov, revealed that 23 per cent of these borrowers believe they will be between 61-65 years old. One in ten (11 per cent) expect to be between 66 and 70 before completing mortgage payments.

Nearly a quarter of homeowners in the North (23 per cent), South (25 per cent) and Midlands (23 per cent) say they will be in the 61-65 years old age bracket, but the highest percentage comes from Scotland at 34 per cent.

The research also found that that 32 per cent of borrowers would be prepared to cut back on general living expenses for at least six months, including food and energy bills, to be able to afford the mortgage for their next home.

Half (49 per cent) were willing to forego luxury items to buy a home and 56 per cent would reduce the amount of time spent with friends and socialising, while 53 per cent would cut back on shopping for at least six months to be able to afford a new mortgage.

A quarter (26 per cent) would be willing to take on the stress of a new job with a higher wage to secure the finance for their dream home. And almost a quarter (23 per cent) said they would borrow the maximum amount available to them.

Andrew Webb, sales & marketing director of Equifax Personal Solutions, said: “The fact that, according to the research we commissioned, many homeowners recognise the importance of cutting back on their lifestyle spending, including holidays and socialising, is promising in terms of managing their future affordability.

“It’s also important because of the new mortgage affordability rules. Home buyers need to remember that their current financial behaviour will determine the likelihood of them being able to borrow the amount needed for their next home.

“We suggest anyone planning on making a home move in the next six to 12 months keeps track of their current financial commitments and regularly checks their credit report. When applying for a mortgage, credit information will be used to confirm their identity and assess their credit status. It’s important, therefore, that they understand what information is on their credit report.”