Many older homeowners still have mortgages

A recent report has suggested that many people in their mid-fifties onwards still have mortgages to pay off, which means that when they reach retirement age they may end up struggling to continue with mortgage repayments rather than being able to enjoy their retirement in comfort and without financial worries. Many may not even be getting a particularly adequate pension fund, but may still have to find money to make mortgage repayments.

It is thought that around one in three middle aged consumers will still be making mortgage repayments when they retire according to a recently report. More than one million homeowners will have failed to clear their mortgage loan debt by the time they reach the age of sixty five, leaving the mortgage debt hanging around their neck at a time when they should be able to relax and enjoy their golden years.

One industry official stated: ‘Many baby boomers are facing up to the reality of still having a mortgage debt close to or even beyond their retirement age. Even those that should be debt-free by 65 still have substantial commitments. It is crucial that the next generation of homeowners do all they can to be debt-free earlier.’

Officials are concerned over how these homeowners will manage on the limited income that comes with a pension, especially in cases where some may be relying mostly or solely on their state pension, which will make it difficult to afford anything other than basic living costs. The average mortgage debt of consumers aged over 55 is currently around £55,000, and this will mean mortgage repayments of around £725.

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