Half of FTBs delay buying a home: Equity Release Council

Nearly half of homeowners under the age of 40 entered the real estate ladder “much later” than expected, according to new research from the Equity Release Council, which it says highlights a more relaxed attitude to. with respect to debt later in life.

The professional body says 45% of young homeowners with a mortgage delayed buying their first home, compared to 29% of homeowners over 40.

He adds that 43% of mortgage owners under the age of 40 have relied on financial help from family or friends to buy their first home. By comparison, only 23% of people over 40 relied on similar support to move up the property ladder.

The association says, “The rise of deferred home ownership means that having a mortgage later in life is likely to become more common for consumers. “

He adds that 32% of homeowners with a mortgage are unsure whether or not they will become “mortgage free” before they retire. While 20% think that the idea of ​​retiring “without a mortgage” is unrealistic.

His survey shows that 24% of homeowners with mortgages say they don’t mind paying off their loan later in life. And 47% think their generation’s attitude toward debt later in life is more tolerant than that of their parents, with 52% of 25- to 34-year-olds most likely to feel this way.

The data shows that 70% of mortgage owners feel comfortable with their current level of mortgage debt, reaching three in four among those over 50.

He reports that many homeowners feel that taking out a mortgage later in life can benefit them – 32% see it as a way to provide money to improve their lifestyle, while 31% see it as a way to improve their lifestyle. ” access funds to support family members.

The survey also found that one in three mortgage owners believe financial service providers are improving the supply of mortgages to retirees.

However, the need for clear information is evident as 36% of respondents say they do not know what mortgages are available for older people. Research suggests confusion is highest among those under 40, where 42% of respondents feel it.

Jim Boyd, Managing Director of the Equity Release Council, said, “The realities of deferred home ownership are causing people to re-evaluate their attitude towards secured debt later in life.

“There are clear signs that paying a mortgage in retirement is no longer a taboo – for many people, it can mean the difference between struggling financially and enjoying a more comfortable lifestyle while supporting members. of the family.

“The ability to use real estate wealth to enhance your retirement experience is a choice that many homeowners have gained over the years of paying a mortgage and building an asset.

“Our results suggest that loan products later in life are likely to be even more important to future generations of retired homeowners than they are today.”

Legal & General Hospitality Financing General manager Claire Singleton said: It is not surprising that borrowers are generally more comfortable carrying mortgage debt into their sixties and sixties and we know that the increasingly flexible product line, such as rretirement Iinterest oonly and ooptional ppayment Ifor life mMortgages, where customers can choose to pay the interest on their loan, helps make lending later in life a good choice for many customers.

It is also interesting that many young homeowners have benefited from the help of their families to move up the property ladder, as our own research has shown that giving funds to help loved ones is a popular reason to free up equity.

The growth in home prices over the past decade has meant that for some homeowners their property is now their most important asset; in fact, half of homeowners in England and Wales could unlock an average of £ 72,988 from their home – above the average pension pot of £ 61,930.

With the right advice, later life loans can help people get the most out of their home equity. “

the Equity Release Council survey was conducted by the Censuswide data group among 5,000 nationally representative UK adults in May.

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