Mark Screeton, CEO at SunLife, comments on the number of pensioners that are still paying off their mortgage, and the impact this is having on their retirement income.

More than half a million retirees in the UK still have not paid off their mortgages, according to research from over 50s experts SunLife.

SunLife surveyed 2,000 people over 50 and discovered that of the two thirds (68%) that are homeowners, more than 1 in 5 (23%) are still paying off their mortgage.

And while most (87%) of those with outstanding mortgages are still working, the research shows that 13% of those still paying off their mortgages are retired.

This means that of all retirees in the UK, 1 in 14 (7%) – the equivalent of just over 500,000 older people –  may still be burdened with paying monthly mortgage payments.

Mark Screeton, CEO at SunLife said: 

According to our research, the average homeowner retiree has a home worth more than £320,000 but a household income of less than £30,000.

This means that the vast majority are cash poor and property rich. And while most own their homes outright, around 1 in 14 still have a mortgage. So, for those people, a chunk of that relatively modest income is still being spent on housing, rather than on making the most of life in retirement.

For some of these people it could make sense to tap into the equity that’s tied up in their homes. But for many, downsizing to free up the cash is not an option – maybe it’s too expensive, or they have emotional or physical ties to their homes and neighbourhoods. That’s where equity release, where suitable, could offer a solution.

Full release: Half a million pensioners are still paying off their mortgages

✉️ Rachel Mason, PR Prose, 07759 147131 / prprose@live.co.uk