An additional 36% would find it difficult to manage repayments, bringing the total who could struggle to nearly two-thirds (64%) and potentially putting many into financial distress
More than a quarter (28%) of over-55s fear they would not be able to afford their mortgage if it moved onto their lender’s standard variable rate (SVR), reveals new research from Perenna.
An additional 36% would find it difficult to manage repayments, bringing the total who could struggle to nearly two-thirds (64%) and potentially putting many into financial distress.
More than a third (37%) are considering selling their houses to relocate or downsize. This rises to almost half in London (48%), where property prices are 34% higher than the average property price in the UK.
The research also found that almost two-thirds (60%) believe there is a lack of choice and financial products tailored to them, and more than a third (36%) find their mortgage restrictive because of their age profile.
Around a fifth (18%) of respondents stated that mortgage repayments have restricted their ability to travel or engage with leisure activities.
A further 17% report an impact on their financial stability and ability to support their family, while 9% have postponed retirement plans to pay off their mortgage.
Arjan Verbeek, Chief Executive Officer and co-founder of Perenna, commented: The present UK mortgage market is ageist. A whole demographic is being unfairly excluded and left behind, because of their age. We think that is wrong.
He added: The lack of options available for people over 55, furthered by a fear of being trapped in their provider’s standard variable rate, is putting many in financial distress. This should not be the case. Retirees should have solutions available to live the lives they desire and deserve. Our new long-term fixed rate retirement interest-only mortgage is a step towards financial freedom for older homeowners.