Rising Trend of Ultra-Long Mortgages Raises Retirement Risks

Extended mortgage terms increasingly stretch beyond state pension age, posing financial threats to future retirees.

Over one million new mortgages in the past three years have terms that extend past the state pension age, highlighting a significant shift in lending practices.
Former pensions minister Sir Steve Webb warns that these extended mortgages could force retirees to use their pension savings to clear debts, increasing their risk of poverty.
Financial authorities note a growing norm of lending into retirement, with projections showing a rise in mortgage maturity ages.
The Financial Conduct Authority emphasizes the need for lenders to consider long-term affordability, especially as retirement approaches.
Experts urge potential borrowers to consult with independent advisors to navigate the complexities of long-term mortgages and retirement planning.