Older first-time buyers ‘face mortgage debt in retirement’

More and more of us are buying our first homes later in life.

But that can cause financial obligations that last well into retirement.

According to new data from Sprive, of the 827,000 people who bought their first home with a mortgage in 2023–24:

• two-thirds will still be paying their mortgage into their 60s
• around one in 20 could still be paying into their 70s
• 11.5% were aged 45 or over (up from 3.6% just five years ago)
• 1.6% were over 65 - a group so small it wasn’t even counted five years ago

Longer mortgage terms are also on the rise:

• 84.9% of first-time buyers (about 702,000 people) took out a mortgage term longer than 25 years
• nearly one in three (around 520,000) signed up for 35 years or more

So not only are first-time buyers getting older, they’re also committing to decades of repayments.

Homeowners face uncertain incomes

Jinesh Vohra, chief executive of Sprive, said many of those buying later in life had been renting into their 40s as they were hoping for financial help from family or an inheritance.

And when they finally do buy, they’re paying higher house prices than ever before.

But Mr Vohra is concerned that the changing nature of work could cause problems for these people.

“[They] now face the risk of losing income security due to AI’s disruption of traditional jobs,” he commented.

“If your mortgage runs until you’re 70 but your role is replaced by AI in your 50s, what happens then?”

Mr Vohra added that carrying mortgage debt into retirement is “becoming the norm”.

However, he warned that this is “incredibly dangerous when future income is uncertain”.

More older people are borrowing later in life

Data from UK Finance shows that later life mortgage lending is growing fast.
 
In just the first three months of 2025:

• 38,510 new loans were given to older borrowers - up 33.5% from the same time last year.
• These loans were worth £6.1 billion - a rise of 42.6%.
• 5,620 lifetime mortgages (where you borrow against the value of your home) were taken out - up 11.1%.
• These were worth £530 million, up 39.5%
• 339 retirement interest-only mortgages were agreed - up 19.4%, worth £33 million.

What happens if I fall behind with my mortgage payments?

If you’re struggling to pay your mortgage, don’t ignore it. 

Help is available and the sooner you act, the more options you’ll have.

Speak to your lender

Get in touch with your mortgage lender and let them know:

• what you can afford to pay right now
• when you’ll be able to start making full payments again
• when you’ll be able to start paying back your arrears

Your lender can then put forward ideas about how they can help, such as extending the term of your mortgage.

Check your insurance

If you’ve fallen behind with mortgage payments because of an accident, sickness or redundancy, see if you have mortgage payment protection insurance.

It’s often taken out at the same time as the mortgage, so it’s worth looking through your documents.

Cut your costs

Use our budget planner to work out how much money you have coming in each month and where it’s going.

This can make it easier to spot areas where you can cut back and save, and ultimately, be in a better position to keep up with vital expenses, such as mortgage payments.

Read our guide to creating a budget to see how you can get started.

See what financial help you can get

Use our benefits calculator to see what government support you might be eligible for.

Get advice

Speak to one of our friendly money advisers. 

We offer confidential, practical and impartial advice and will help you find the right solution.

You can contact us:

• online
• call us on 0161 518 8285
• book a call back at a time that suits you