The UK pensioners are saddled with debts totalling £57bn from a combination of mortgages and credit cards, and one fifth of retired people are still paying off their mortgages, according to a new survey.
The survey by Scottish Widows also finds that a third of pensioners owe an average of £5,900 on their credit cards and loans.
1.1m pensioners owe an average of £38,800 on their property, while one in eight owes more than 50,000.
There is also an increasing tendency for homeowners to view their homes as assets for use in retirement one in five Britons expect that they will need to sell their homes to fund their retirement, while around 7% plan to borrow against the home to raise extra cash.
According to Ian Naismith of Scottish Widows:
“The easy availability of mortgages in recent years has encouraged many people to take out mortgages extending beyond their likely retirement dates. This makes home ownership more affordable, but could be storing up problems for the future, especially if interest rates continue to rise.”
Help the Aged warns that older people may start to struggle as more mortgage lenders allow them to extend their mortgage repayments beyond likely retirement dates, with the risk that they may not be able to keep up mortgage payments with no source of income.
According to the charity, Paul Bates:
“With one in five retired homeowners still paying a mortgage and one in five pensioners living in poverty, the future looks pretty bleak. When people dont have work to fall back on, financial worries can be incredibly stressful and have a ripple effect on health and well being.”
If you are retired, and having trouble keeping up with mortgage payments, a quick sale to a cash buyer like Molae Properties will enable you to pay off mortgage debts, and even have a little extra cash.
In addition, with our sell and rent back solution; it may be possible to remain in your own home.