Pensioners still paying mortgages

New research has revealed that more than a quarter of pensioners will still have to be checking their mortgage rates as they continue to make house payments into their retirement.

Conducted by equity release firm Key Retirement Solutions KRS, the report showed that 27 per cent of over-65s still had a mortgage on their property, with the average sum left to pay resting at £35,441.

However, this figure rises to £52,576 for those over 70, which equates to £389 a month – a similar figure to an entire state pension.

Dean Mirfin, group director at KRS, said that the results of the study were "worrying".

"Servicing debt cannot continue to be a way of life once you no longer have an income to enable you to comfortably make repayments and clearly many pensioners will struggle to juggle loans, credit cards, overdrafts and mortgages," he explained.

Godiva Mortgages recently cut the pay rate on its two-year fixed-rate buy-to-let mortgage by 0.15 per cent, with the deal now priced at 4.59 per cent, as well as its two-year base-rate tracker, now at 3.35 per cent.

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2010-04-28 13:48:00 © Moneyextra.com