People are facing a larger portion of their lives spent in debt, according to a new report, which has found that people don’t tend to become fully debt free until age 69.
This goes against the general expectation of people, which is that they will become debt free by the age of 57.
One of the biggest contributors to these increased years of debt are mortgages. A mortgage is both one of the biggest loans a person will take out in their life, and one of the most common loans that people get.
Although mortgages with smaller deposits are often preferred in the property market, especially, among first time buyers.
Unfortunately, having a high loan to value mortgage means that the loan will take much longer to pay off, leading to mortgages payments potentially extending beyond retirement age.
Of course, it is more than possible to remortgage throughout your life, adjusting the terms of a mortgage so that it can be paid off sooner.
The report was compiled by the Centre for Economics and Business Research, commissioned by Zopa. It compared data from a survey of over 2,000 people, and data from the office of National Statistics (ONS).
Furthermore, the report predicted that people currently between the ages of 16 and 24 are likely to belle years of age before they become debt free.
The forecast isn’t as bad for those in Wales, Scotland and the North-East of England.
The report highlights the knock-on effects of the housing market as it currently is, and how affected first time buyers may be in the future.