The fast rising age of the average first time buyer in the UK means a sharp increase in the number of people carrying mortgage debt into future retirement, in turn fuelling a future boom in equity release sales, research published by Prudential suggests.
Pru pegs the number of people affected at 12.5 million, or roughly a quarter of the Great Britain population when extrapolated from the results.
According to the research findings, 42% of FTBs are over 35 years of age. Some 21%, or nearly 1.3 million people, are 45 or older.
And some 10 million people between the ages of 35 to 65 have started a new mortgage term when moving house, Pru adds.
Answers to a poll of some 1,000 adults around Great Britain suggests about 12.5 million people currently in the UK could hit retirement carrying mortgage debt, resulting in sharply rising demand for equity release.
Growing realisation of the problem means people are increasingly seeing property as an asset to be leveraged to fund a standard of living rather than maintaining the target of paying off a mortgage by the time retirement comes round, the provider says.
Just 53% of those surveyed said they felt owning a house outright was an important goal.IFAonline
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