Retired people ‘still repaying mortgage debt’

Many older people are left repaying mortgage debt well into their twilight years, it has been noted.

Figures from Key Retirement Solutions have revealed that the average borrower aged 65 or over owes £43,069 on their home loan.

The data – based on 3,826 pensioners who carried out equity release with the firm last year – also showed that a typical homeowner aged over 70 is £48,442 in the red on their mortgage.

Reasons why elderly groups may still have such debts include the failure of investments or the need to pay for necessities, the company noted.

Group director Dean Mirfin said that he was “concerned” over the findings, adding that many older borrowers look to equity release as a way to raise cash from their properties.

This can “eradicate their mortgage debt to free up much-needed income to further enhance their retirement years”, he remarked.

Recently, Alex Edmans from Saga Personal Finance said that such schemes are becoming increasingly important for retired people.

By Jamie Price

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