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One in 10 homeowners face mortgage payments past 70, survey finds

People are buying homes at a later age, giving them less time in their working lives to repay the loans

Over one in four homeowners expect they will still be paying back their mortgage past the age when most people retire, according to a new survey. Photograph: Rui Vieira/PA Wire

Dominic Coyle
Fri Feb 9 2024 - 05:00

More than one in four homeowners expect they will still be paying back their mortgage past the age when most people retire, according to a new survey.

And almost one in 10 people who responded to the survey carried out by Royal London Ireland believe they will still be paying it off after they reach 70. The figure is highest among those who are currently over the age of 55.

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The survey says that 18 per cent of mortgage holders, or close to one in five, expect to fully own their home by the time they turn 70, with a further 8 per cent resigned to waiting until they are 75 to have the full balance paid off.

“The average age of homebuyers is rising each year, going from 36 years in 2019 to 39 years in 2021. This trend is likely to put more pressure on some mortgage holders, as they have less time to pay off their home loans,” said Joe Charles, proposition director at Royal London Ireland. “As a result, there is an increased risk that people may have to continue paying off their debts into their retirement years.”

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People in Dublin are most likely to have an outstanding mortgage balance past the age of 65. However, by the time they turn 70, according to the figures, just one in 20 in the capital foresee themselves still being in debt on their family home, the lowest of any region in the State. That compares to over one in 10 in Connacht/Ulster.

The figures from a sample size of 437 people do show some improvement on a similar survey carried out in 2020, when just shy of 30 per cent feared they would be repaying their home loans in retirement.

Over one in three people presume they will have cleared their mortgage debt by the time they turn 60, with one in six hopeful of doing so by the age of 50.

In general, women are more optimistic than men about having the home loan paid off well before retirement. But more than twice as many women as men fear they will still be saddled with debt past the age of 70.

“While, ideally, it is best to have a mortgage paid off by the time you are retired, some people simply won’t be in a position to do so,” said Mr Charles, adding that it could lead to additional “potential financial strain to their retirement years”.

Dominic Coyle

Dominic Coyle

Dominic Coyle is Deputy Business Editor of The Irish Times

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