One in three home owners in the UK aged over 50 still have a mortgage and many have never tried to renegotiate for a better deal, new research shows.
Mortgagees in this age group have still got around £50,000 to pay and one in 14 think they have been prevented from moving their mortgage to a more competitive deal because of their age.
The research by the Saga Equity Release Advice Service also shows that of those home owners in their 70s who still have a mortgage on average they have £40,000 to pay.
While many of those in their early 50s still have years of working life to chip away at their debt, around one in seven people in their 70s are faced with having to use their weekly pension to pay off what’s owed instead of using it to enjoy their retirement as they had planned.
Saga says that shopping around for a new mortgage could help people pay it off quicker but one in 10 over 50s say they are concerned about their lenders maximum borrowing age and it appears they are right to be worried as 7% say they have been prevented from moving their mortgage to a more competitive deal because of their age.
‘Millions of older homeowners have found themselves abandoned by mortgage lenders and stuck in uncompetitive deals because of the unfair age restrictions that many lenders have in place,’ said Alex Edmans, head of retirement at Saga Personal Finance.
‘If these people had access to a better deal they wouldn’t have to pay as much back each month which would leave them with more money to enjoy their retirement. For those in retirement struggling to meet their monthly mortgage costs it may be worth considering a lifetime mortgage to help ease the burden of the monthly repayments,’ he explained.
‘This may not be suitable for all, so it is well worth speaking with a specialist adviser, who would consider all alternatives and review whether any state benefits could help provide some relief. It is also extremely important that people discuss their options with their family or loved ones and we advise our customers to do this before taking out a lifetime mortgage,’ he added.
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Source: Property News Spain