Remortgage
Print friendly version 11 Jun 2008

Retiring Brits plagued by mortgage debt

A third of those nearing retirement in the UK owe £207bn in outstanding mortgage debt according to Key Retirement Solutions, an average of over £37,000 a head.

The findings, based on 4,507 people aged 55+ who released equity in their home with the equity release specialist in 2007, show that there has been an 20% rise year-on-year in the average amount of mortgage debt owed by those in, or nearing retirement.

Further analysis shows a third of all over-55s have outstanding mortgage debt, while 35% of those aged 60-69 and 29% of those 70 years and over still have mortgage repayments to make.

Dean Mirfin, business development director at Key Retirement Solutions, said: “While this analysis is based on those who have released equity from their home, if this is only part reflective of pensioners as a whole, then this is of huge concern.

“The rising cost of living is increasingly affecting all of us today, but it is the older generations that are feeling the pinch more than others. With estimates from Age Concern putting the number of pensioner households living in fuel poverty at 2.25 million, with an estimated 250,000 pensioner households pushed into fuel poverty by the price rises this year alone, many have little income left to enjoy their twilight years.

“Our analysis shows we are seeing more and more people reaching retirement still with outstanding mortgage debt. An increasing number of people are choosing to remortgage as an alternative to downsizing, carrying out improvements on their home, or even helping their children get that first step on the property ladder in today's almost impossible market. As the cost of living continues to rise, more than ever people approaching retirement should be aware of the real threat debt poses to their finances in retirement and subsequently their lifestyle.”



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