The study revealed that nearly half of all FTBs would prefer to commit to a 50-year mortgage, rather than take a loan from a family member or buy with a friend.
In addition, the survey stated that one in three FTBs believed their property would fund their retirement. However, with the average age of FTBs now approaching 30, these buyers could still be paying off their 50-year mortgage well into their eighties, and many will pass on their debt to their children.
HotProperty’s managing director, Shawn Luetchens, said: “50-year mortgages are already popular in countries like Japan, and with the UK’s property prices continuing to rise, it is not surprising that so many British FTBs are interested in taking out these types of mortgage. What is a concern is that a large proportion of them believe that their property will be the mainstay of their pension fund.”
Other findings of the survey showed that almost three quarters of respondents do not consider external factors, such as the state of the UK economy and Bank of England comments, as important when buying property. Thirty per cent of respondents believe it is too early to be contemplating their pension plans.
Sarah Gwilt, mortgage adviser at Dickson Lishman Prince, commented: “Standard repayment mortgages of 25-years do not work in most cases nowadays. Although I have not had a request for a 50-year mortgage yet, lots of my customers are now asking for 30 or 35-year mortgages. Income multiples are so tight that perhaps lenders will have to start considering lifetime mortgages.
