Millions of people are now facing the prospect of carrying mortgage debt into retirement, as buying homes later in life and longer mortgage terms have become more common, research from Sprive found.
In 2023/24, 975,000 people bought their first home, with 827,000 using a mortgage.
Of those, 11.5% were aged 45 or over, which is up from 3.6% in 2019/20.
Around 16,000 first-time buyers (FTBs) were over 65, a figure that was not recorded in 2019/20.
In 2023/24, 84.9% of FTBs took out mortgages for more than 25 years.
Nearly a third of those, 250,000 people, signed up for terms of 35 years or more.
Additionally, Sprive found that at least 547,000 FTBs in 2024 will be paying their mortgage in their 60s, making up 66% of FTBs.
One in 20, 26,000 people, will still have mortgage debt in their 70s.
The research also showed an increased reliance on family money.
In 2024, 31% of FTBs received a gift or loan from family or friends.
This went up to more than a third among 25-44s.
Almost one in 10 relied on inheritance, but for buyers aged 45 to 64, this doubled to almost one in five.
Just under 60% of 45-64s bought using savings alone, compared to over 90% of those under 35.
Jinesh Vohra, CEO at Sprive, said: “We’re seeing the emergence of a perfect storm. People are getting on the ladder later in life – many because they are ‘wait to inherit’ buyers who are stuck renting into their 40s, hoping for financial support or inheritance to break in.
“Then when they finally do so, they are paying more than ever for homes, and now face the risk of losing income security due to AI’s disruption of traditional jobs.
“Carrying mortgage debt into retirement is becoming the norm – but it’s incredibly dangerous when future income is uncertain.”
Vohra added: “If your mortgage runs until you’re 70 but your role is replaced by AI in your 50s, what happens then?”
“We have to prepare for that possibility now — and that starts by helping people get mortgage-free sooner.”
He said: “Mortgages are one of the biggest financial commitments most people will ever make. The system wasn’t designed for people to be paying them off in retirement, we’re on a mission to change that.
“Overpaying is the best way to clear your mortgage quicker – and pay less in the long run by cutting down the amount of interest – however, with rising costs – and increasing mortgage rates – most people don’t have the extra cash to pay off their mortgage faster; and that is how Shop with Sprive can help.
“It doesn’t push people into spending more than they would otherwise -or at retailers they wouldn’t usually use – because we’ve focused on partnering with brands that our customers are likely to use on a regular basis.”
