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Reality of mortgage terms ‘going to the age of 70 potentially could be quite slim’– Star Letter 16/05/2024

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  • 17/05/2024
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Reality of mortgage terms ‘going to the age of 70 potentially could be quite slim’– Star Letter 16/05/2024
Each week, Mortgage Solutions and its sister title, Specialist Lending Solutions, pick the top comments from our readers.

This week’s first comment is in response to: Young homeowners ‘gamble’ on retirement with longer mortgage terms – LCP

Corby Macdonald said: “A lot of people are going beyond the payment of state pension, but that reflects a lot more people are working beyond state pension age, as well due to the current cost-of-living crisis.

“UK state pensions are some of the lowest in the world for an industrialised nation. As for Steve Webb, as a former minister of pensions, maybe he should have worked harder to ensure that our pensions are a lot higher?”

They continued: “The crux of the matter is how do those with these longer mortgages handle them? If you are 30 and you take a 40-year mortgage, which would be two years post your standard state pension age, is it now fair to assume with regular reviews, homemoves, potential pension pot to utilise, the reality of going to the age of 70 potentially could be quite slim?

“What is really needed is to look at the reason as to why. A lot of people are splitting in their 50s and have owned properties for years and then they have nothing and look to buy as opposed to rent. That is just one simple type of case we see that needs to be understood and potentially that longer term. Let’s get over the headline and dig for the facts.”

Mortgage networks can be ‘complicated to understand’ until you’re in one

This week’s second comment is in response to: Switching networks isn’t difficult, yet many make it so – Rees

Paul Smulovitch added: “It’s the same as people changing bank accounts or energy supplier[s]. Sometimes it’s complacency and sometimes it’s lack of understanding. It can be so complicated to understand how a network operates until you’re actually within it that, unless there are significant barriers to market, which with larger networks there often is, then it can be a case of the grass isn’t always greener.”

 

The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.

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