There is a growing trend among the community which is paying a mortgage far into their retirement years. It is caused by a variety of reasons, but it is mainly due to their age at the time of purchase being pushed back. Typically, this is due to a variety of challenges placed before them as they try to reach the first rung of the property ladder. This trend is a growing number of pensioners are paying for a mortgage far into their senior years of life.

Millions of pensioners are paying for a mortgage well into their later years of life. To place it in perspective one can reference the year 2006 when 25% of original mortgages spanned beyond the age of 65. Today, the number has grown to 40%. And this number could be low according to some mortgage experts. Challenging new rules installed after the economic crisis of 2009 limited lending to older homeowners.

Demand for mortgages which push well past the retirement age of 65 are increasing. Lenders are responding by making more deals available. This has proven to be a challenge, as the profile for senior borrowers is quite unique compared with younger borrowers.

It is quite normal for older borrowers to require longer terms on their mortgage product for one reason or another.

David Hollingworth of London & Country commented on the plight of many older borrowers, saying: “Some but not all of these borrowers are in a difficult spot.”

Hollingworth added: “There are some people who, for example, are reaching the end of an existing mortgage but do not have the wherewithal to repay the capital without selling up and moving. That’s a more ‘distressed’ situation.

“But there is another group of people who have ample income and who simply want to continue borrowing at low rates because they have better uses for their capital.”