Mortgage problems could hit ‘retired homeowners’

Retirees are being warned to brace themselves for limited pensions once outstanding mortgage repayments have been deducted.

One in three Britons over the age of 55 have yet to pay off their home loans, according to new statistics from Key Retirement Solutions.

The firm found average monthly repayment on outstanding mortgage debt for retirees is £218 leaving just £282 spare for some on a monthly basic pension to cover bills and other costs of living.

Chris Tapp, director of charity Credit Action, comments: “These findings show that the financial difficulties of those entering, or already in, retirement show no sign of easing in 2008, if anything the picture is worsening.”

He advises pensioners who are already feeling the strain to “take action” immediately.

One way of doing this is to switch to a more competitive mortgage deal, according to the editor of Your Mortgage, Pauline McCallion.

© Adfero Ltd

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