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Sunday 07th of September 2008
June 11, 2008

The pensioner mortgage afflicts one in three


by Gill Montia
The pensioner mortgage afflicts one in three

Key Retirement Solutions is suggesting that around one-third of Britons who have entered or are nearing retirement still owe substantial sums on their mortgages.

In a study of 4,507 equity release clients (aged 55 and over), one-third still had mortgage debt.

Among the 60 to 69 year-olds, 35% were still repaying their home loans. Neither were the over 70s clear of the debt, with 29% making mortgage repayments.

The average amount owed by 55 to 59 year-olds stands at £29,083; the 60 to 64 year-old age group owe an average £31,368 and for 65 to 69 year-olds, the figure rises to £32,871 of mortgage debt.

However for those over 70, mortgage debt has increased 23% year-on-year, taking the average to £45,493.

A trend of rising debt among over 60s Britons has also been identified by research from the Consumer Credit Counselling Service (CCCS), which says it is seeing increasing numbers of pensioner clients, and estimates that their average debt is close to £30,000.

Meanwhile, the pension deficit time bomb is ticking away, with longevity experts forecasting that one in two of today’s 50-year-olds will live until they are 90.

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