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Centre for Policy on Ageing | |
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Lengthening the ladder: the future of mortgage borrowing in older age
— full research report by the ILC-UK, supported by the BSA in conjunction with the CML | | Author(s) | Ben Franklin, Cesira Urzì Brancati, Dean Hochlaf |
| Corporate Author | International Longevity Centre UK - ILC-UK; Building Societies Association - BSA; Council of Mortgage Lenders - CML |
| Publisher | International Longevity Centre UK; Building Societies Association, London, May 2017 |
| Pages | 56 pp |
| Source | http://www.ilcuk.org.uk/images/uploads/publication... |
| Keywords | Mortgages ; Retirement ; Research. |
| Annotation | Many people are joining the housing ladder later in life, and taking mortgages with terms that extend into retirement, a trend that is likely to increase. Based on current trends for home ownership, mortgage debt, housing equity and population change, the authors estimate that there will be a significant shift in the customer base of the mortgage market between now and 2030. By then, the authors estimate that the over 65s will hold the majority of the nation's housing wealth, while also accounting for a rising share of overall mortgage borrowing. In light of these trends, this report seeks to better understand the circumstances of those who are mortgage borrowers in retirement, by conducting in-depth analysis of the Wealth and Assets Survey (WAS) from the Office of National Statistics (ONS). The report looks at the theory and evidence on the distribution of mortgage debt by age; and explores the changing demographics and economics behind increased interest amongst older borrowers. The report examines the characteristics of current borrowers in retirement, comparing those who do have mortgage debt with homeowners who do not have an outstanding mortgage. The characteristics of future borrowers are examined and compared with those who are unlikely to have any outstanding mortgage debt in retirement. The authors try to establish the key causal reasons determining the likelihood of being a borrower or non-borrower. Some implications and recommendations for policy, industry and the regulator. (RH). |
| Accession Number | CPA-170512003 B |
| Classmark | WQA: G3: 3A |
Data © Centre for Policy on Ageing |
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| ...from the Ageinfo database published by Centre for Policy on Ageing. |
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