People ‘taking out mortgages later in life’

Responding to a recent report by Scottish Widows that found a growing number of retirees have substantial mortgage debt, one expert suggested that this is because people often buy properties later in life.

Speaking to BBC One’s Breakfast programme, a spokesman for Which?, said that older people are increasingly taking on new debt to help their children onto the property ladder.

Many remortgage their own property or take out a joint mortgage to help their children, as the cost of the average first-time property continues to rise.

As people choose to take on greater debt in their retirement, this can increase pressure on retirement income, he warned.

“You haven’t actually got a steady income, you are having to draw upon your pension payouts or savings or investments,” he remarked

“And if you have to pay a mortgage in retirement it could become a very real problem.”

Abbey recently found that 23 per cent of first-time buyers turn to their relatives and friends for information and advice about their first home.

© Adfero Ltd

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