Warning to people born before 1969 who are still paying off mortgage

James Rodger
·2-min read
UK Finance said 33,840 people over 55 - born before 1969 - took out mortgages during the three months ending September - in a development which is worrying experts.
-Credit: (Image: Reach Publishing Services Limited)


Tens of thousands of older people are taking out mortgages ahead of Christmas. UK Finance said 33,840 people over 55 - born before 1969 - took out mortgages during the three months ending September - in a development which is worrying experts.

The number of much older borrowers taking out a mortgage rose, too, with 9,010 borrowers over the age of 65. Clare Stinton, head of workplace saving analysis at Hargreaves Lansdown warned how taking mortgage debt into retirement raised income requirements and can complicate planning. “Retirement used to mean waving goodbye to the mortgage that’s been tailing you for the last three decades and unlocking income to indulge in life’s pleasures during your silver years," Stinton said today.

"But surging house prices mean the retirement landscape is changing. The expectation of a debt-free retirement is giving way to a reality where many retirees face lingering mortgages, so they need higher day-to-day income to manage their living costs and maintain their quality of life – and this means pensions savings need to be higher."

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Chris Bibby, Managing Director at Key, said: “Paying mortgages into retirement is clearly a growing issue with increasing numbers of homeowners expecting to still be making monthly repayments after they stop work. That might sound worrying but potentially a bigger worry is the sacrifices that people are making to ensure they are mortgage-free by the time retire which can include not saving into their pension and delaying retirement.

That is very concerning and highlights the need for later life lending solutions which can provide better outcomes for over-55s with mortgages. There are more flexible ways to manage money in the run-up to retirement and to achieve a better balance. Over-55s should seek specialist advice on the growing number of options available which could help them to have the retirement they want.”

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