Elderly heading for ‘mortgage timebomb’
Pensioners in the UK could be heading towards a £98 billion mortgage “debt time-bomb”, according to research.
Data from Key Retirement Solutions found that a quarter of people are taking mortgage debts of more than £98 billion collectively, which amounts to an average of £31,000 per head.
The survey estimates that average debt among mortgage holders aged 60-64 is £23,512, rising to £29,000 for those aged between 65 and 69.
Dean Mirfin, business development director at Key Retirement Solutions, commented: “With the rising trend in higher levels of borrowing and fewer people saving for retirement, this could be a time-bomb waiting to hit the next few generations of pensioners even harder than we’re seeing now.”
He added that despite the fact that the analysis is based upon from those who have equity release, it has to be “of huge concern to us all”.
The news follows reports from Hometrack that house prices in Britain reached their highest monthly increase in four years in March.
Consumers falling behind with mortgage payments may wish to seek debt help for assistance with their finances.
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