You are here: Home - Mortgages - Remortgage - News -

Seven million over 50s still have a mortgage

0
Written by:
15/09/2015
Around seven million over 50s are still paying off their mortgage, according to research by the Saga Equity Release Advice Service.

Despite working hard and saving all their life, one in three over 50s still have a mortgage and on average they will need to find £50,000 to own their home outright and be mortgage free.

While many of those in their early 50s still have years of working life to chip away at their debt, around one in seven people in their 70s are faced with having to use their weekly pension to pay off what’s owed, instead of using it to enjoy their retirement as they had planned. On average these people have £40,000 left to pay.

While shopping around for a new mortgage could help people pay it off quicker, around one in three over 50s said they have never tried to renegotiate their mortgage.

In fact, one in ten over 50s say they are concerned about their lenders maximum borrowing age and it appears they are right to be worried as one in 14 (7%) say they have been prevented from moving their mortgage to a more competitive deal because of their age.

Alex Edmans, head of retirement 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. This may not be suitable for all, so it is well worth speaking with a specialist adviser, who would consider all alternatives and review whether any state benefits could help provide some relief. It is also extremely important that people discuss their options with their family or loved ones and we advise our customers to do this before taking out a lifetime mortgage.”

 

 

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.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week