Borrowers to be repaying mortgages into old age

The research, commissioned by Equifax, revealed that 23 per cent of homeowners had originally planned to pay off their mortgage in their 50s but now believe they will be between 61 and 65 before they own their homes outright.

A further 10 per cent expect to be between 66 and 70 before completing their mortgage payments.

The data from the government pollsters also showed that homeowners in the north of England were the least optimistic about how long it would take to own their home outright, with 42 per cent worried they would be well into retirement and paying the mortgage off with their pension income.

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Londoners, however, were the most optimistic – only 27 per cent thought they would be older than expected before they paid off their mortgage.

Adviser view

Brian Murphy, head of lending at Derby-based Mortgage Advice Bureau, said borrowers in many instances were often now older than in the past when embarking on the path of home ownership. Also, he said, many people have tended to increase mortgage terms to keep repayments more affordable, as graduates today are saddled with student debt whereas those in the 1980s and 1990s were not.