In the modern age, we have all got used to having things available and ready to use in super quick times. Be it our ability to watch a video online or get our favourite takeaway delivered, we like things to be readily available for us to enjoy.

Despite this, there are still plenty of things that need to be given time. A fine wine is a good example. But a more relevant one for us is securing a mortgage. This is something it’s best not to rush.

We at Roots Mortgages are experts in providing contractor mortgage brokerage services, as well as freelancer mortgage and residential mortgage guidance. As part of this, we feel it our responsibility to ensure all areas are covered when you are putting together a mortgage application.

One thing to bring into your thoughts is the length of your mortgage, and particularly the age at which you will pay off your mortgage.

Looking into the future

There aren’t many things we have to think about which involve having to mentally fast forward a few decades, and envision ourselves a lot older and (possibly) a lot wiser.

But buying a home is one of those things. The very nature of a mortgage commitment is one that will likely span decades. But this could mean that you will be, to be blunt, getting on a bit by the time the full amount is paid off.

When looking into mortgage options then, it is vitally important to consider the age you will be when your mortgage repayments conclude. 

Retirement age vs Mortgage repayments

When a certain age is reached, you can start to turn your thoughts to your retirement and what that extra time may be able to afford you the opportunity to do.

But depending on the length of your mortgage deal, there is a chance that your envisaged retirement age, and the age at which you finish paying off your home, could be very close to one another.

They could even overlap, meaning that you might still be paying off your mortgage after you stop working. Given the reduced income retirement brings, this is not an ideal situation.

Striking a difficult balance

There are a few factors at play that make striking this balance between retirement and mortgage length a particularly tricky thing to do.

One is the increasing average age at which a person takes the step onto the property ladder. Data from Trussle indicates that this average age has risen from 29 to 32 over the course of the past decade.

Additionally, longer term mortgages are increasingly the go-to. This provides an applicant with more affordable mortgage repayments on a monthly basis, and gives them the chance to purchase the home they want sooner rather than later.

The downside of this of course is the higher likelihood of mortgage repayments being something still to consider in older age. 

This is something of a growing trend, as the last decade has also seen a huge rise in 35-year-mortgages. The Financial Conduct Authority has released information indicating that over 63,000 mortgage deals covering 35 years of repayments have been taken out by UK buyers in the past 10 years. This is a 75% year-on-year increase.

Considering all factors

It can be easy to get excited about your plans to buy a home, and any impediment to that can feel really frustrating. 

But the length of your mortgage, and whether this is going to encroach on your retirement plans is something to be mindful of, however far away they may feel.

Larger deposits can help reduce mortgage terms, while being willing to cover more of your mortgage each month can serve you better over time depending on your income.

However you choose to examine this in relation to your own mortgage application, be sure to put the time into protecting ‘future you’ from a headache down the line when it comes to repaying your mortgage.