Nearly half (45%) of homeowners under 40 stepped up to the property ladder later than expected, compared to 29% of those over 40, according to an Equity Release Council (ERC) study .
The study also found that 43% of mortgage owners under the age of 40 relied on financial help from family or friends to buy their first home.
In comparison, only 23% of people aged 40 and over relied on similar support to move up the home ownership ladder.
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Almost one in three (32%) homeowners with a mortgage were not sure whether or not they would have a mortgage before retiring, and 20% felt the idea of taking retirement. retirement without a mortgage was unrealistic.
However, 24% said they wouldn’t mind paying off their loan later in life, and 47% said their generation’s attitude toward debt later in life is more tolerant. than their parents, 25 to 34 year olds being the most likely to feel this way (52%).
The results showed that the majority (70%) of mortgage owners felt comfortable with their current level of mortgage debt, reaching 75% among those 50 and over.
One in three mortgage owners (33%) believed financial service providers were getting better at providing mortgages to retirees.
However, 36% said they don’t know what mortgages are available for older people.
The council’s research suggested confusion was highest among those under 40 (42%).
Jim Boyd, CEO of ERC, said, “The realities of deferred home ownership are causing people to re-evaluate their attitude toward 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 financial hardship 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.
“Life and retirement mortgages allow people to get the most out of homeownership as a source of wealth and as a home.
“Our results suggest that loan products later in life are probably even more important to future generations of retired homeowners than they are today.
“It is essential that we continue to break down the misconceptions that remain about the choices of people in retirement and improve awareness of the options available.
“The consumer protections involved in exploring freeing up equity are designed so that people can make informed and informed decisions, which means considering all potential alternatives and often leads to a completely different course of action. . “