Retirees burdened with mortgage payments

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Research by TheRetirementCentre.com uncovers a staggering level of retirees are still paying mortgage repayments, placing a strain on their retirement income.

Mortgaged property

Image of property with money

It is clear to see the expectation of entering retirement having paid off your mortgage is coming to an end

Research by http://www.TheRetirementCentre.com reveals a staggering 21% of retirees are still paying off their mortgage each month, placing a significant strain upon their retirement income whilst they continue to make their monthly repayments.

The research revealed an average outstanding mortgage balance of £82,000 which even using one of the lowest tracker mortgage rates available equates to a monthly outlay of £807.72 a month.

The survey revealed that 35% of retirees who lived in a property valued between £350,000 and £500,00 were most likely to have a mortgage outstanding, compared to 20% of retirees who lived in a property of £150,000.

Those retirees who lived in a property with a value of less than £150,000 and had a mortgage had an average outstanding mortgage of £27,500, whilst those who had a property valued between £350,000 and £500,000 had an average outstanding mortgage of £101,260

Dominic Fraser-Smith Managing Director of TheRetirementCentre.com said "It is clear to see the expectation of entering retirement having paid off your mortgage is coming to an end. It is likely that we will see the percentage of people retiring with debts including mortgages increase significantly over the next five years"

He then continued to say " Individuals who are retiring today are already facing pressure on their retirement income as a result of lower annuity rates. People are going to have to look at their retirement plans differently moving forward and make sure that they are taking all aspects of their finances into account including their property to ensure they have an enjoyable life in retirement.

For anyone who is facing financial difficulties they should contact the Citizens Advice Bureau or visit their online advice guide at http://www.adviceguide.org.uk

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Notes to editors:

  •     TheRetirementCentre.com is designed to help everyone over the age of 50 through the challenging process of retirement for free. Through our strategic partners we are able to offer market leading products and services for the over 50's market. From maximising retirement income with our whole of market annuity service through to leading savings and a whole lot more.
  •     The monthly mortgage repayment was calculated using http://www.tandcmortgages.co.uk and based on a tracker mortgage with repayment and Interest over a 10 year period. The property value was entered as £350,000 providing an LTV of 23.57% therefore excluding the higher rate LTV loan rates. The product selected was the Woolwich 3.29% tracker
  •     The research was undertaken in July 2012 using Toluna Quick http://www.tolunaquick.com and based upon a sample size of 200 participants over the age of 50 in retirement
  •     For further details visit: http://www.TheRetirementCentre.com
  •     For further information please contact Dominic Fraser-Smith on 0113 3205595 or email: Media(at)TheRetirementCentre(dot)com

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