Pensioners burdened by mortgage debt

According to a survey conducted by YouGov, one in five pensioners (or one million people) owes an average of £38,000 on their mortgage.

The survey questioned 5,414 people and found that for one in eight, mortgage debt stood even higher, at £50,000.

Help the Aged believes such findings have worrying implications for the Government’s Housing Green Paper, which proposes extending the terms of mortgages.

It is asking the Government to take stock of how financial advice is given to those approaching retirement, so people do not end their working lives with unmanageable debt.

At the same time, Scottish Widows is advising anyone reaching retirement in the next few years to consider well in advance how best to prepare themselves for a reduction in income, if they still have debt outstanding on their mortgage.

One in ten over 65s is also using pension income to support children and their attempts to get on the housing ladder.

Mortgage debt forms part of a total of £57 billion owed by the elderly to banks and other lenders.

Taking into account credit card debt and other loans, the average amount owned by almost one in three pensioners stands at £5,900.

The average household income for the respondents to the YouGov survey was £22,900.

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