Rising interest rates, paired with high inflation, have created an unsustainable situation for many mortgage borrowers of all ages
While several large lenders in the UK have startedin recent weeks due to intensified home loan market competition, borrowers continue to face very high costs. People of different ages are faced with varying options to manage this.
Paul Heywood, chief data and analytics officer at Equifax, said: “Faced with higher monthly repayments, many borrowers are extending their loan terms for years into the future, hoping to spread out costs to ease the financial burden. “However, this is not available to all customers equally. Customers nearing retirement age are one of the toughest-hit groups, with many set to still be repaying their mortgages well beyond retirement age. Some members of this older demographic are unable to extend their terms further, meaning they are faced with more expensive monthly repayments.”
Homeowners facing this dilemma are encouraged to reach out to their lender to explore what options are available to them, which may include potentially downsizing to remove a significant financial outlay.