Third Of 20 To 45-Year-Olds Expect To Work Beyond Retirement Age To Pay Mortgage

One in three 20 to 45-year-olds expect to be working beyond their retirement age to pay off their mortgage, a report has found. The survey from Halifax among people who are already on the property ladder and those who are not yet home owners found 34% of people aged 20 to 45 expect to still be working to pay off their home loan after they reach the standard retirement age. Among people in this age group who are already home owners, 28% expect to work beyond retirement to become mortgage-free. But among those who are not yet on the property ladder, the figure is higher, with 39% believing they will be working later in life to pay for their property. Read more on the Daily Mail website.

One Month Left To Get On Property Ladder

People planning to buy their first home have just months left to buy a house or risk missing out on the chance of getting on the property ladder for years to come.  Scottish Friendly has warned that from April people entering retirement will be able to drawdown their pensions in one lump sum, and there are concerns that many of these pensioners will use the funds they have amassed to invest in the property market. This increase in demand on an already swollen property market is likely to send house prices higher, which will mean that those looking to buy a house for the first time may get priced out of the market for the foreseeable future. Read more on 24dash.

Working Poor Forced To Spend Half Their Income on Housing

Close to 1.6 million UK households – the housing pinched – are spending more than half their disposable income on the ongoing costs of housing each month.  Of the 1.6 million, retired households and working age households in which nobody works account for just over a third (7 per cent – 110,000 households – and 30 per cent – 480,000 households – respectively). Leaving these two groups aside, there remain close to 1 million working households who are spending over half their disposable income on housing costs. Data from the estate agent LSL Property Services showed rents rising more quickly than inflation, increasing by 2% since July 2013. The Council of Mortgage Lenders (CML)have  also issued a warning on interest rates, despite reporting a fall in the number of borrowers struggling with repayments. Read more on the Resolution Foundation website.