Will Hale, CEO at Key, comments on how the cost of living crisis has affected the over-55s' mortgage repayment plans.

Latest tracking research from Key highlights that 30% of over 55s believe that their ability to repay their mortgage will be hindered due the cost-of-living crisis, equating to around 879,000 people’s mortgage plans being derailed. 

Of those 3.3 million over-55s who have yet to repay their mortgage, 16% say they plan to repay their mortgage ahead of retiring but the cost-of-living crisis will make it harder while 13% say it will take them longer. Two in five (40%) over-55s have already repaid their mortgage.

Will Hale, CEO at Key, the UK’s largest equity release adviser, said: 

The cost-of-living crisis is no longer a short-term challenge but one that has far longer implications for many – especially those who are older and looking to pay off their mortgage.   It is extremely worrying that almost 900,000 over-55s are going to find it tougher to repay their borrowing as they work hard to deal with rising household bills  alongside the need to save enough to be able to enjoy a secure and fulfilling retirement.

With a larger proportion of their income being used for utilities and groceries – expenses which have been particularly hard hit by inflation – many over-55s are considering how they can cut back in other areas or even return to work in order to better manage their finances.  However, some are already living extremely prudent lives so are likely to feel under increasing pressure to make ends meet.

Full release: Almost one in three over-55s with a mortgage admit cost of living crisis has impacted repayment plans

✉️ Lee Blackwell, Key Group, 07384511140 / Lee.blackwell@krgroup.co.uk