Millions are expected to carry mortgage debt well into retirement amid soaring numbers of first-time buyers in their mid-40s and older.
The number of first-time buyers aged 45 and over has more than tripled in just four years, according to figures from mortgage overpayment app Sprive.
Of the 975,000 first-time buyers recorded in 2023–24, a staggering 827,000 used a mortgage – and 11.5% of those were aged 45 or older. That’s up from just 3.6% in 2019–20.
Experts warn that many of these buyers, often dubbed ‘wait-to-inherit’ borrowers, are locking themselves into decades of debt, with more than a quarter of a million people now taking out mortgage terms of 35 years or more.
While mortgages were once typically repaid over 25 years, today’s buyers – faced with sky-high house prices and interest rates – are stretching their repayments into their 60s, 70s and even 80s.
Sprive estimates that two-thirds of first-time buyers will still be repaying their mortgage in their sixties, while one in 20 will be doing so in their seventies.
That means at least 547,000 people who bought their first home last year will be repaying into their sixties, and 26,000 will carry their debt into their seventies, making mortgage-free retirement a pipe dream for many.
Jinesh Vohra, chief executive of Sprive, warned: « We’re seeing the emergence of a perfect storm.
« People are getting on the ladder later in life – many because they are ‘wait to inherit’ buyers who are stuck renting into their 40s, hoping for financial support or inheritance to break in.
« Then when they finally do so, they are paying more than ever for homes, and now face the risk of losing income security due to AI’s disruption of traditional jobs. »
He told Thisismoney: « Carrying mortgage debt into retirement is becoming the norm – but it’s incredibly dangerous when future income is uncertain.
« If your mortgage runs until you’re 70 but your role is replaced by AI in your 50s, what happens then? We have to prepare for that possibility now – and that starts by helping people get mortgage-free sooner. »
Indeed, AI is now seen as a rising threat to long-term job stability. The Institute for Public Policy Research has warned that up to 8 million jobs in the UK could be at risk from automation – many of them in traditional white-collar sectors.
For those who lose work later in life, mortgage repayments could become crippling – especially compared with older generations who paid off their homes decades earlier.
Borrowing boom among over-55s
The rise in late-in-life buyers comes as separate figures show older borrowers are increasingly turning to equity release and other forms of home borrowing just to make ends meet.
According to UK Finance, 38,510 new loans were advanced to borrowers over the age of 55 in the first three months of this year – a 34% rise compared to last year.
This includes a growing number of equity release deals, often taken out to repay existing mortgages when monthly repayments become unaffordable.
The number of new lifetime mortgages hit 5,620 in the first three months of 2025, up 11 per cent in a year, while retirement interest-only loans were up by nearly a fifth (19%).
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: « Later life mortgage lending boomed over the past year, casting a significant shadow over our retirement planning.
« Having to find the money to pay housing costs in retirement can put real pressure on a budget that may already be under severe strain.
« Some will be able to work later and use the extra cash to meet these outgoings, some will have windfalls during their working life to help pay off lump sums, but others face difficult retirement spending choices. »
Experts advise that even small overpayments during the mortgage term can shave years off the total loan – helping avoid the risk of still being saddled with repayments during retirement.
