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Over 12 million people will still have mortgages in retirement

Over 12.5 million people will have a mortgage when they retire as people enter the housing market and switch to new terms later in life, according to research from Prudential.

The data shows that 42 per cent of first-time buyers are now over 35 years (2.55 million people) and 21 per cent are over 45 (1.27 million people), pushing increasing numbers into the prospect of paying off their mortgage in retirement.

Over 10 million people aged 35 to 65 have started a new mortgage term at least once when they moved home and 46 per cent of homeowners are using or planning to use their home for retirement funding.

But Pru says people&#39s attitudes are changing with the new realities and they are less concerned about owning their home outright, with only 53 per cent saying it very important to own their home outright.

Equity-release plans director Ali Crossley says: “The reality is that people are still going to be paying off their mortgage as they hit retirement, at a time when their average income drops by almost £4,200 and other financial pressures come into play. People reaching retirement age can expect to live for 20 years and unless they start to plan and save more, financial pressures will become tougher in retirement.”


Woolwich and Barclays link to offer guaranteed lifetime tracker loan

Woolwich and Barclays will be jointly offering a guaranteed lifetime tracker mortgage by the end of the month. The loan will allow borrowers to track the base rate plus 0.04 per cent for two years and then change to a guaranteed lifetime tracker of 0.95 per cent above the rate. Monthly payments on a 25-year […]

Actuaries tell MPs that smoothing transparency will kill with-profits

The Faculty and Institute of Actuaries says with-profits is finished if the Treasury requires full client disclosure of smoothing. The FIA says IFAs would be likely to be misselling if they advise clients to buy with-profits. Under close questioning from members of the Treasury select committee on Tuesday, Faculty of Actuaries president Tom Ross and […]

CML launches online regulation training

The Council of Mortgage Lenders has launched an online regulation training package to familiarise both lenders and brokers with the new FSA regulations to be implemented this October. The package is designed to help lenders and intermediaries train for a variety of roles and also aims to support students in understanding the FSA&#39s rules. The […]

Route march

The FSA&#39s deadline for direct authorisation registration is upon us and the networks are lining up their mortgage offerings. After April 30, firms are not guaranteed that their direct authorisation applications will be processed in time to continue doing business and networks are seeing this as the perfect opportunity to bring new recruits on board. […]

Leading Edge – April 2017

There is little doubt 2017 will be a year of political uncertainty. Leading Edge is Royal London Asset Management’s regular review of investment markets. This edition explores some of the impacts that this uncertainty is having on investors, from the pitfalls of prediction within UK equity investing to the dangers of opting for convenience over […]


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