Mortgage advisors concerned about knock-on impact of buying a home later in life

Irish Mortgage Advisors (IMA) said over 90% of mortgage protection insurance policies are being taken out by those over the age of 30

Data from IMA shows the proportion of people aged between 45 and 49 renting in Ireland rose by 66% between 2011 and 2022

Nine out of ten mortgage protection insurance policies are being taken out today by people over the age of 30, with Irish Mortgage Advisors (IMA) urging people to be aware of the "knock-on financial consequences" of buying a home later in life. 

The professional body also found that one in eight mortgage protection insurance policies are taken out by people in their 50s, while those in their 30s are the most likely to buy mortgage insurance, accounting for 44% of total policies.

“There has been a marked shift in the profile of house buyers in the last two decades, with the median age of house buyers increasing significantly in recent years, up from 35 in 2010 to 40 today," said IMA chairman Trevor Grant. 

"In 2004, 60% of first-time buyers were younger than 30, and by the first half of 2023, this had fallen to one in five."

For many people today, it is taking much longer to buy a home than they had ever envisaged. The steep house price inflation of recent years, along with the severe shortage of housing, are likely behind this.”

The organisation said it is concerned about the rising number of families that are renting later into life and the potential for that trend to lead to an increasingly financially vulnerable society. There has also been a substantial increase in the number of people renting into their 40s and 50s.

Data from IMA shows the proportion of people aged between 45 and 49 renting in Ireland rose by 66% between 2011 and 2022, while the number of those renting aged between 50 and 54 soared by 71%. IMA data also shows the number of renters between 55 and 59 has grown by 85%.

“While the decision to buy or rent can be a lifestyle one as much as a financial decision, rising house prices and the chronic shortage of housing in Ireland have also led to an increase in the numbers of people renting," said Mr Grant. 

"More people are renting well into their 30s and 40s and beyond today and more people are starting families while still renting.

IMA is urging renters to take steps now to reduce their financial vulnerabilities, including to forward plan and to get independent advice from a qualified advisor, particularly if they have a young family.

“Renters, just like homeowners, need security in terms of a home for their family if the unexpected happens," said Mr Grant. "There’s a perception that protection products like life cover or serious illness insurance are only for people with a mortgage. 

"In practice, they’re for anyone that needs to protect their home for their family— but take-up among renters is low. It may not be possible to remove the uncertainty of renting, but it is possible to reduce the vulnerability — especially when children are involved.