Loans lasting up to 40 years can leave buyers unable to save for pension, say regulators
First-time buyers are taking out jumbo loans on longer terms that will leave four in 10 borrowers paying off their mortgage well into retirement, regulators have warned.
The Financial Conduct Authority (FCA) found that 40% of borrowers who took out a mortgage in 2017 will be aged over 65 when their mortgage matures – leaving them unable to save for a pension, and vulnerable to any financial shocks.
Source: the guardian – property
Four in 10 UK first-time buyers will retire with mortgages, FCA warns