Saga: over-70s have £35n mortgage debt

Published on

Older couple

Research by Saga Personal Finance suggests that four in 10 over 50s are paying off a mortgage worth on average £49,000.

According to the research, more than 900,000 people in their 70s still have an average mortgage bill of some £38,000, that means the over 70s have with a total mortgage debt of £35.2 billion.

And for 6.3 million over 50s with an interest only mortgage, who had intended to pay it off with an endowment policy, over two-thirds say their underperforming endowment will not foot the bill; some are having to contemplate selling their house to make up an average shortfall of more than £42,000.

A third of over 50s, would need to sell their house to make up the shortfall, according to Saga’s research. Two thirds of over 50s have made alternative plans to pay off their mortgage, often using a combination of options.

A third say they will dip into their savings, 22% say they have been making capital repayments to reduce the debt, 18% will use other investments to make up the shortfall and just over one in 10 have extended their mortgage to give them extra time to pay it off. However, more than one in 10, some 1.7m people, admit they have no way of bridging the gap.

Jeff Bromage, chief operating officer, Saga Personal Finance, said: “Being saddled with mortgage debt well into your retirement is far from ideal as it means keeping an eye on the coffers when you should making the most of life.

“Millions of British homeowners have been hit hard by underperforming endowments. Thankfully, there are options available. A growing number of people are turning to equity release in order to avoid selling their home, upping sticks is probably the least-favoured option for many facing a shortfall, as their home is so much more than bricks and mortar and will hold so many happy memories.

“If you’re over 55 and a homeowner, equity release could be a solution. It gives you access to money tied up in your home, giving you peace of mind and the freedom to enjoy your retirement properly.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Landlord sales slow following Renters’ Right Act

The share of homes listed for sale that were previously rented dropped to 9.2%...

Knowledge Bank teams up with Brilliant Solutions for specialist lending cases

Knowledge Bank has formed a partnership with specialist mortgage packager Brilliant Solutions as demand...

FCA urges firms to strengthen product design under Consumer Duty

The Financial Conduct Authority has highlighted examples of improved product governance under the Consumer...

Validate appoints Louise Shute as managing director

Valuation specialist Validate has appointed Louise Shute as managing director as it continues to...

Swap rates fall but funding risks remain, warns Moneyfacts

In a week that saw more than 20 lenders reduce their fixed mortgage rates,...

Latest publication

Other news

Landlord sales slow following Renters’ Right Act

The share of homes listed for sale that were previously rented dropped to 9.2%...

Uncertainty means greater need for client conversations

Last week showed just how quickly events on the other side of the world...

Knowledge Bank teams up with Brilliant Solutions for specialist lending cases

Knowledge Bank has formed a partnership with specialist mortgage packager Brilliant Solutions as demand...