100,000 over-65s still paying mortgages

Sarah Davidson

October 29, 2012

Its analysis showed up to 103,000 over-65 households are still repaying mortgage debt – 81,000 households fell within the 65-74 age group and 22,000 were aged over 75.

The high number of mortgagors aged over 65 reflects changing work patterns with more people working past traditional retirement ages and the rising age of first-time buyers, suggested More 2 Life.

But it warns that the numbers paying off loans past 65 is a potential mortgage time bomb which could leave pensioners at risk of struggling to make payments as their incomes reduce.

And it forecasts the issue is likely to become a bigger problem as more homeowners with interest-only mortgages come to the end of their term.

The Council of Mortgage Lenders estimated 150,000 interest-only loans will mature each year until 2020.

More 2 Life is helping to tackle the problem with the launch of the first equity release plan which enables customers to continue to pay interest while protecting the equity in their property and accessing additional funds.

Jon King, managing director of More 2 Life, said: “There is a potential mortgage time bomb ticking with pensioners paying home loans way past traditional retirement ages.

“Some can afford to pay off their mortgages but many will face income shocks and could really struggle if they still need to pay off a home loan as well as paying for the basics.”

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