Mortgages until 95yrs, will this come to the UK in the future?

[screamingj]

This is currently China's answer to their own property crisis. I can see some version of it happening here too in years to come. Why not? We're living longer and it feeds into the governments support of private housing. Whether we can actually afford it is another matter. Without thinking about it too hard it makes sense to me to extend the period you can take out a mortgage as many of us are living longer and working. What d'you think?

I doubt many people will live to 95 even with people living longer. It list means the bank will be able to take what they're owed from the capital when it's sold? You'd never truly own it in your lifetime unless you were one of the few people who made it past that age

It’s just a way to farm people’s endeavors.

I would think it impractical and an unattractive prospect here in the UK.

I am interested in this.. I have not been able to buy a house since DH and I split .. I have just inherited £125k and have a lump sum of £66 from pension when I take partial retirement at 60..

In the SE so even a one bed flat is over £200k

A £50k mortgage would sort me.. but I can't get one at 59... I would welcome this .

£60k !! Not £66 thank god ..

I currently pay £1000 in rent .. so YES PLEASE!!

Wouldn't that basically be like renting from the bank until you die and then the bank selling the house to get repaid if you don't make it to 95? What is average life expectancy?

Average life expectancy is about 79 for men and 83 for women. You'd be unlikely to ever pay it off.

How would you afford the mortgage repayments on a pension? If you therefore had to downsize, would the equity be enough to buy another property?

Would you be allowed to overpay to reduce the term?

Theres loads of places in the SE where you can buy a flat outright for your money.

Mortgages are often cheaper then rent so it would actually be cheaper for people to have this as an option then renting in retirement.

I read that you can already get them from some places

My friend got a 40 year mortgage on her new built but they bought mid 20s but even that I found mad!

That's nonsense because people are not going to work until they are 75- 95 and for many their pension would not cover a mortgage and leave them enough to live on.

Well it makes sense. Many people have decent pensions and could easily afford a small mortgage repayment on it, in many cases it would be cheaper for them than renting. Also, many people take out mortgages and die before the term ends, it's not just old people who die.after all. And if property prices go up, which historically they do, they could leave the balance of the property value to someone in a will. Hard to do that when renting. Think it makes a lot of sense and for many people would be a good option

How would they pay rent if they can’t afford a smaller mortgage?

Lots of people, especially public sector workers, will have decent pensions as well as state pension, so would be able to afford a mortgage.

Apparently quite common in Japan where people either downsize and use the equity they've gained to buy somewhere smaller outright, or they pass on to their children who have a family sized house with say 50 of the 95 years paid off, leaving them 45 years to pay off - which is feasible within a working life.

Why can't you get a mortgage at 59? I bought a house after a long time renting, at aged 51, with a large deposit like you have. The mortgage term is 19 years, taking me to 70. In reality I'll have it all paid off in 3 years at aged 56, but the point is you can a mortgage in your 50s or 60s.

I’d do this, I’d rather have more
money now. We’re getting a 35-year mortgage term to lower the monthly payments (DH will be 71 at the end). Well overpay if we can, and prob downsize after kids

In some places you can get multi generational mortgages.

Many mortgage companies lend to 70 or 75 in the UK
You need to consult an open market mortgage broker
your loan to value would be low too

@Hadtochangeforthisone

Many lenders offer mortgages until 70/75 speak to a broker

In some countries the mortgages are linked to the property rather than the person so they get passed on when someone dies. If you inherit the house, you inherit the mortgage too. I guess that would mean there is no age limit providing you can make the interest payments.

My parents have a lifetime mortgage from Clydesdale Bank they took out last year in their mid 70's paid from their pensions