A third of over-45s in London worry they will never pay off their mortgage

 
Helen Cahill
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House Prices Are Stagnant In London
Many homeowners expect to use their property to fund their retirement (Source: Getty)

A third of people over 45 in London worry they will never be mortgage-free, according to a report from Aviva released today.

Aviva found 32 per cent of over-45s in London are uncertain about whether they will ever be able to pay off their mortgage, compared to 17 per cent of over-45s across the UK.

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The report also found that in London 59 per cent of over-45s see their home as part of their retirement planning. In the country as a whole, only 46 per cent think their property wealth will form a part of their retirement income.

Alistair McQueen, savings and retirement manager at Aviva, said: "It's no great leap of logic for homeowners to look towards their housing wealth to help make their sums add up in later life.

"Our analysis suggests we are looking at the early stages of a shift in attitudes and expectations, with younger generations more open to using their housing wealth as retirement income."

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Clive Bolton, managing director of Aviva's retirement solutions, wrote in the report: "For many, their home is their most significant asset by far - and this is likely to remain the case despite Brexit casting some doubt over the future trajectory of house prices.

"The demand on this asset, however, are great. For many, it is seen as a source of retirement income; for many it is a means of funding care in later-life; and for many it is their inheritance for the next generation. For many it is a source of worry as they carry mortgage debt into later life."

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