You are here: Home - Mortgages -

‘Shocking’ numbers to retire with mortgage debt, finds poll

0
Written by:
23/08/2012
Almost half a million people will retire over the next 30 years saddled with average mortgage debts topping £50,000, research suggests.

Figures from The Equity Release Council, the trade body for equity release companies, suggest that, over the next 30 years, 403,908 people will retire with an average of £52,446 still outstanding on their mortgage.

The findings were based on a survey of some 2,000 borrowers.

Andrea Rozario, director general of The ERC, said: “Many people find that, due to unforeseen circumstances, they enter retirement with a small amount of debt, but the fact that over 400,000 people expect to still be repaying their mortgage when they retire is shocking.”

A fifth (23%) of those aged 55-64 believe they will retire owing an average of £65,955 and 17% of 45-54 year olds say they will owe £48,037 on their mortgage when they finish work, the research found.

The ERC said the proportion of people who believe they will retire with mortgage debt increases as they get closer to retirement.

It said this could be down to setbacks such as an underperforming endowment, meaning more people will be facing more debt than anticipated.

Rozario also said the trend could be down to people buying homes in later life and re-mortgaging on a regular basis.

“With 73% of people intending to use housing equity as part of their later life finances, many are sure to use it to solve the problem of repaying a mortgage or other debt in retirement,” she said.

“Downsizing might be the answer for those with more valuable homes but many 55 – 64s will struggle to repay over £65,000 worth of borrowing and still buy another property.”

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

The 20+ savings accounts that beat inflation

Inflation unexpectedly remaining flat in June was good news for savers who had been expecting the rate to rise...

Why you shouldn’t buy travel currency in the UK with your credit card

If you’re heading abroad this summer, exchanging money in the UK ahead of your travels is a sensible idea. But...

Bank of England: base rate could stay under 2% for 30 years

The Bank of England (BoE) has admitted that current forecasts show its base rate could remain under 2% for the...

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2200633-ben-bemanke
Gold hits highest since early May on Fed easing boost

The spot price of gold climbed by over 1% to $1,655 an ounce as the Federal Reserve said it is...

Close