One in seven over-70s still haven’t paid off their mortgages: Thousands being forced to use pensions to pay off remaining debt rather than enjoying retirement
Millions of pensioners are still paying off their mortgages well into retirement, a study found.
One in seven over 70s and a third of over 50s are still paying off a home loan – eating into their pension savings.
Britons older than 70 with an outstanding mortgage typically still owe £40,000, rising to £50,000 among the over 50s.
Times are tough right now, and they don’t get less tough as you get older, according to this report. It seems a staggering number of septuagenarians are still paying off their pensions. If only they’d had help from a good financial planner, such as the one who paid for this PR:
Saga, which surveyed 1,500 older homeowners, said many were forced to ‘use their weekly pension to pay off what’s owed, instead of using it to enjoy their retirement’.
Saga indeed – in fact, the financial wing of Saga, who market themselves toward the older end of the market. Little surprise, then, to see them stoking up fears of fiscal instability… fears their own specialists can relieve:
Alex Edmans, at Saga Personal Finance, said: ‘Millions of older homeowners have found themselves abandoned by mortgage lenders and stuck in uncompetitive deals because of the unfair age restrictions that many lenders have in place.
‘If these people had access to a better deal they wouldn’t have to pay as much back each month which would leave them with more money to enjoy their retirement.’
‘For those in retirement struggling to meet their monthly mortgage costs it may be worth considering a lifetime mortgage to help ease the burden of the monthly repayments’, he said.
‘This may not be suitable for all, so it is well worth speaking with a specialist adviser.’
And that’s where the specialist advisers at Saga Personal Finance presumably come in, naturally.