Credit, Collections & Insolvency News
New analysis by Sprive, suggests a perfect storm is brewing as millions face retiring with mortgage debt hit by late homebuying, sky-high prices, and AI disrupting income security
Analysis of official Government housing data* reveals that as buyers are being forced to take on longer mortgage terms later in life, they are increasingly likely to carry debt into retirement.
Sprive found that of the 975,000 first time buyers in 2023/24, 827,000 bought with a mortgage and of these, 11.5% were aged 45 or over – that’s almost triple the figure (3.6%) in 2019/20 – while around 16,000 people (1.6%) were over 65; in 2019/20 this number was not significant enough to record.
Furthermore, most of these buyers are not just arriving late to the ladder; they’re also locking themselves into decades of debt.
In 2023/4, 702,000 first-time buyers – that’s 84.9% – took on mortgage terms of more than 25 years; of these, almost a third (30.3%) – equivalent to 250,000 people – committed to 35 years or more.
In total, the analysis found that at least 547,000 of 2024’s first time buyers will be paying their mortgages in their 60s – that’s two thirds (66%) – while a minimum of one in 20 (26,000 of last year’s first time buyers) will still be in housing debt in their 70s.
The reports analysis also found an increased reliance on family wealth and inheritance among first-time buyers; 31% of first time buyers in 2024 received a gift or loan from family or friends to be able to afford their first home, rising to more than a third of 25-44s.
Overall, almost one in 10 (9.2%) relied on inheritance, but this doubled to almost one in five (18.9%) of buyers aged 45–64. Just 59.5% of 45–64-year-olds were able to buy using savings alone, compared to over 90% of those under 35.
Sprive also warns that the long-term risk is compounded by a fast-changing jobs market. With AI and automation disrupting traditional career paths, it is predicted that up to 8 million UK jobs could be at risk* – particularly in white-collar sectors – meaning many homeowners face uncertain future income just as they take on their largest financial commitment.
Jinesh Vohra, CEO of Sprive said “We’re seeing the emergence of a perfect storm. People are getting on the ladder later in life – many because they are ‘wait to inherit’ buyers who are stuck renting into their 40s, hoping for financial support or inheritance to break in. Then when they finally do so, they are paying more than ever for homes, and now face the risk of losing income security due to AI’s disruption of traditional jobs.
“Carrying mortgage debt into retirement is becoming the norm – but it’s incredibly dangerous when future income is uncertain.”