Mortgage Debt in Retirement: A Growing Concern
Half a million state pensioners in the UK are still paying off their mortgages, with an average debt of £33,627. This is a significant burden, especially considering that many of these individuals are living on a modest pension income. According to research by SunLife, 13% of retired mortgage holders are still working to make ends meet, while 7% are struggling to make monthly mortgage payments.
The dream of a mortgage-free retirement is becoming increasingly elusive for many.
The situation is further complicated by the fact that many of these retirees are cash-poor but property-rich. They may own their homes outright, but their income is limited, making it difficult to afford the monthly mortgage payments. In such cases, equity release could be a viable solution, allowing them to tap into the value of their homes to pay off their mortgages.
Mark Screeton, CEO at SunLife, notes that equity release can be a useful tool for retirees who are struggling to make ends meet. By releasing some of the equity in their homes, they can pay off their mortgages and free up more money for living expenses. However, it’s essential to approach equity release with caution, as it can accrue compound interest and reduce the value of the estate.
Equity release can be a useful tool for retirees, but it’s essential to approach it with caution.
In other news, Broker Conveyancing has appointed Steve Johnson as its new area director, covering the East Anglia and Essex regions. Johnson brings over 20 years of experience in business development roles, primarily in the mortgage lending sector. His appointment is expected to drive growth and support for advisers in the region.
Broker Conveyancing appoints new area director to drive growth and support in East Anglia and Essex.
Meanwhile, Atom, a UK app-based bank, has been accredited as a lender by the British Business Bank under the new Growth Guarantee Scheme. This scheme is designed to support access to finance for small and medium-sized businesses in the UK. Atom has made significant changes to its commercial mortgage proposition, increasing the maximum loan-to-value and reducing rates across the range.
Atom bank accredited as a lender under the Growth Guarantee Scheme.
