In a new twist for the UK, over 25% of those who are looking to purchase their first homes are in their 40s. This is creating a situation where buyers are either being forced to pay off their mortgages with faster than normal terms or to become senior citizens strapped with a mortgage.
Longer Renting
This situation has come about as many are forced to continue renting longer due to job insecurities and credit drought. According to the property website Rightmove and its research, over half of tenants who are currently renting feel stuck and would like to branch out into purchasing property. As Miles Shipside, the firm’s commercial director explains, they “are trapped.”
As he said,
“The global economic woes that have left first-time buyer numbers at record lows will shatter the goals and aspirations of many as they face the reality of renting for far longer than they originally planned.”
Rents Raising as Well
To make matters worse, a report recently found that rents in England and Wales have reached record highs, forcing renters to continue paying astronomical amounts, while keeping them for saving for a purchase.
A study last year by the insurance specialist Aviva showed that 10% of homeowners over 75 are still paying off their mortgage.