Thursday, May 11, 2006

Pensioner and Mortgages

The Times newspaper reports today that one in six home owning pensioners has an outstanding mortgage, with an average debt of £45,313.

A third of pensioners with a mortgage owe more than £50,000, and one in ten has a debt of more than £100,000, the YouGov poll of 1,472 people aged 55 and over found. That brings the total mortgage debt of pensioners to £47 billion. Although the situation can put increased pressure on incomes during retirement, the bank expects the trend to continue. Just over half of people aged between 55 and 65 who are yet to retire are still burdened with a mortgage averaging £ 61,856.

Read the report it in full here.


Anonymous said...

The want it now pay later generation quite clearly is generations. That said, some may be in my position of having given help to children to get onto the housing ladder or having Kippers (Kids in Parent's Pockets Eroding Retirement Savings) or both. Have increased mortgage rather than decreased it and and endowment going belly up has made the situation worse. Others may be taking view that if the Govt requires those who have saved in their lives to sell home to pay for nursing home care whilst those who have made no provision for old age get it free, what the hell; mortgage up to the hilt and lead the good life and when zimmer frame beckons sell house and clear mortgage and get free care.

Anonymous said...

The best thing those senior mortgage payers can do is sell their houses, pay off the mortgage, spend the money on holidays, cruises, booze whatever and then when technically penniless claim all the benefits they are entitled to.
The worst thing you can have when geriatric is just enough money to pay all your bills and care needs.
Obviously if you are stinking rich this isn't a problem.
Labour governments have always been opposed to wealth transfer from one generation to the next, hence the latest budget anti-trust laws which they are applying retrospectively.