Equity release specialists Key Retirement Solutions have revealed that over one third of pensioners are still paying off their mortgage . The company found that just over 33 per cent of their elderly clients, aged 65 or over, had outstanding mortgage debt . This figure represents a huge increase on the previous year, with a 38 per cent increase in the number of pensioners using equity release plans to pay off their mortgage in 2008. The average outstanding debts stood at £43,069 for those aged 65 and over, though worryingly, pensioners aged 70 and over face even bigger repayments.
Whereas pensioners aged between 65 and 69 are faced with remaining repayments of £34,272, those aged 70 and over have outstanding debts of £48,442. The rise in these figures has been attributed to the failure of investment plans, which would have enabled pensioners to pay off the rest of their mortgages. Unfortunately, they will now be left with a hefty burden which could consume a large portion of their pensions. The problem is not expected to disappear in the coming years, with an increase in the number of people taking out loans which must be repaid into their retirement, as they seek to be able to afford to buy a property .
Pensioners Riddled with Mortgage Debt
Wed, 22 Apr 2009
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