According to research from Key Retirement Solutions has revealed that a quarter of homeowners over the age of 60 still have outstanding mortgage debt.
The research showed that retired people, or those close to retirement who had not yet paid off their mortgage owed an average of £31,000 each.
The total housing debt for over 60s is a massive £98 billion, with the average owed by 60 to 64 year olds is £23,512. For the 65-69 age group, the figure is £29,342, and £37,113 for over 70s.
With official stats showing that 1.4 million pensioners live on £5,000 per annum or less, and the average cost of serving an outstanding mortgage at £215, there is increasing concern that increasing numbers of old people will struggle with mortgage debts.
According to Dean Mirfin of Key Retirement Solutions:
“We are seeing increasing numbers of over-60s coming to us with mortgage debt that they are struggling to manage and looking for a way to ease the burden of debt in retirement.”
“With the rising trend in higher levels of borrowing, and fewer people saving for retirement, this could be a time-bomb waiting to hit the next few generations of pensioners even harder than we are seeing now.”
One solution to the problem is the growing trend of ‘sell and rent back’ property contracts where you can sell your house in order to release the equity and renting the house back. Contact Molae Properties today to find out more about our sell and rent back scheme.