Almost 1 in 10 pensioners still paying mortgages

Almost 600,000 pensioners aged over 65 are still paying off their mortgages, the office for national statistics said yesterday.

The figure shows that almost one in ten pensioners owe money on their homes.

The figure includes 22,000 aged 80 or more. Some have ‘lifetime’ mortgages which do not require payment, or require best mortgage rate competition, but pay the outstanding debt through the sale of their home when they die.

But because of shortfalls on endowment mortgages, or the need to improve their homes, many are re-mortgaging and failing to compare mortgage rates or find the best mortgage rates.

Pensioners are particularly sensitive to interest rate rises on variable best mortgage rates because their retirement income is fixed and often limited. There are warnings that many are at risk of losing their homes.

Banks and building societies are often prepared to help people over 75 compare mortgage rates and provide deals as they use their homes as security.

“Older people still paying off mortgages will be left with less for essential items like heating and eating,” Anna Pearson of Help the Aged told the Daily Mail

“For many, the annual meagre increase in the state pension is completely overwhelmed by inflation-busting council tax bills, rising utility charges and mortgage costs,” she added.

© Adfero Ltd

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