1 in 4 over-50s still paying off mortgage

Almost a quarter of homeowners aged over 50 still have an outstanding mortgage, new figures have revealed.

A survey by SunLife found that 23% of over-50s who own their own home are still making mortgage payments.

Figures also showed that this group owe £67,478 on average.

Nearly half a million pensioners still paying mortgage

Although many of these people are still in work, a significant number are now retired and living off their pension.

In fact, 14% of over-50s with an outstanding mortgage were found to be retired.

That’s almost half a million pensioners.

Retirees with a mortgage still owe more than £63,000 on average and are repaying around £766 each month.

SunLife believes that this means many pensioners are paying about a third of their annual income on housing costs.

“The average homeowner pensioner has a home worth more than £330,000, but a household income of just over £30,000,” said chief executive Mark Screeton.

“This means that the vast majority are cash poor and property rich, and while most own their homes outright, around 1 in 20 still have a mortgage.”

Mr Screeton added that pensioners on a “relatively modest income” are paying “a huge chunk” of it on housing.

What should I do if I’m struggling with mortgage payments?

If you’re finding it hard to keep up with your mortgage payments, or worried about falling behind, then speak to your lender.

They might then be able to offer help such as:

• extending the term of your mortgage to reduce your payments
• a temporary switch to interest-only payments
• a temporary reduction in payments
• a temporary break in payments

Get free debt help 

You can also speak to us if you’re having problems keeping up with your financial commitments.

Whether you need budgeting help, advice on your benefit entitlement or information on debt solutions, we’re here for you.  

All our advice is free and impartial. Some debt solutions are also free, some have a fee.