"The vast majority are cash poor and property rich, and while most own their homes outright, around 1 in 20 still have a mortgage. "
- Mark Screeton, CEO at SunLife
Almost half a million pensioners in the UK still have not paid off their mortgages, according to the latest research from SunLife.
SunLife surveyed more than 2,000 people over 50 and discovered that of the 69% that are homeowners, more than 1 in 5 (23%) still have a mortgage, owing £67,478 on average.
And while most (86%) of those with outstanding mortgages are still working, the research shows that 14% of those still paying off their mortgages are retired.
This means that of all pensioners in the UK, 1 in 20 (5%) – the equivalent of almost half a million (494,541) older people – are still burdened with paying monthly mortgage payments.
On average, these retired mortgage holders still owe more than £60,000 (£63,643), which is costing them £765.75 a month.
Given that, on average, a pensioner’s household income is just over £30,000 (£31,063.84) this means almost a third (30%) of their entire income is still being spent on housing – £9,192 a year.
Mark Screeton, CEO at SunLife, said: “According to our research, the average homeowner pensioner has a home worth more than £330,000, but a household income of just over £30,000.
“This means that the vast majority are cash poor and property rich, and while most own their homes outright, around 1 in 20 still have a mortgage. For those people, a huge chunk – almost a third – of that relatively modest income is still being spent on housing.
“It could make sense for some of these people to tap into that equity that is tied up in their homes. But for many, downsizing to free up the cash is not an option – often it is too expensive, or they are emotionally tied to or physically dependent on their homes.”
