Many still paying mortgages in their 70s, Saga finds.
The average debt for the over 50s is £49,000 and £38,000 for the over 70s. The total mortgage debt for the over 70s is estimated to be £35.2 billion.
There are 6.3 million over 50s with an interest only mortgage, who had intended to pay it off with an endowment policy. More than two thirds say their underperforming endowment will not meet the bill. A third of over 50s would need to sell their house to make up the shortfall.
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 say they have extended their mortgage to give them extra time to pay it off. However, more than one in 10, some 1.7 million people, admit they have no way of bridging the gap.
Jeff Bromage, chief operating officer, Saga Personal Finance, commented: “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 as 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.”