Aviva: People to pay off mortgages for longer

Date:Tuesday 9th June 2009
Author: Susanna Kavka

Consumers in the UK will take an increasingly long time to pay off their mortgages, it has been suggested.

According to Aviva, a rising number of home loan providers are offering 40-year mortgages.

Meanwhile, the average age of first-time buyers is also increasing and currently stands at 34, with this set to hit 41 by 2039.

Aviva therefore states that paying off a mortgage at the age of 80 could become a "common phenomenon".

Responding to the findings, Darren Dicks, head of annuity propositions for UK Life at Aviva, said: "There is a risk that without forward planning, today's young adults could end up in a work-to-live cycle for what feels like forever."

Figures released last month by the British Bankers' Association suggested that mortgage lending fell from £3.4 billion during March to £2.7 billion in April.

According to statistics director at the organisation David Dooks, this was a reflection of the lower number of mortgage approvals in previous months.