Elderly Britons working past retirement age to pay off mortgages, causing anxiety and financial strain.

From Sky News: 2024-06-24 03:03:26

An increasing number of elderly Britons must work past retirement age to pay off mortgages as high street rates hit 6.8%. Nearly half of recent mortgages are 30+ years, leaving borrowers past state pension age when paid off. Many facing anxiety and financial strain, hoping to shorten terms or downsize eventually.

Some homeowners, like a Hove resident, will pay mortgage until they reach 75, relying on company and state pension. Another, Stephen Eblet, is worried about paying off mortgage at 68, one year past pension age, impacting retirement finances. Anxiety levels are rising amongst those facing long-term mortgage debt.

Online brokers see increasing trend of working past traditional retirement age to settle bills. Lenders adjusting age caps as many plan to work until age 70 or 75. Advice to opt for shorter terms to save on interest, but many opt for longer term deals for lower monthly costs. Refinancing hopes for future term shortening.

UK lenders have age limits for taking out and paying off mortgages, with most requiring repayment by age 70-85. Upper age limits for new deals typically end at 80. Individual circumstances like income, credit history, and employment status also impact eligibility for mortgage deals.



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