KRS Reveals Mortgage Troubles Of Pension Age Britons

Older people are facing continued demands for payment on borrowing.

Such is the assertion of Key Retirement Solutions (KRS) after it published a study which indicates that a significant number of consumers who are retired or are approaching giving up work still have mortgage payments outstanding. It was revealed that the average amount of money owed by those over the age of 55 on their property has increased by 20 per cent during the last 12 months ago. Overall, the nation’s older people were indicated as owing 207 billion pounds, an average of 37,316 pounds per homeowner.

However, it appears that those over the age of 70 are placing themselves under the most monetary pressures. These people were indicated shown to owe an average of 45,493 pounds on their mortgage, a rise of 23 per cent from the amount they had to repay in a study carried out 12 months. Some 29 per cent of consumers in this age demographic were shown to still have payments to make. Meanwhile, 55 to 59-year-olds were indicated as owing an average of 29,083 pounds, while 60 to 64-year-olds have 31,368 pounds left to pay.

And due to such difficulties in repaying their mortgage it may also be possible that consumers have developed problems in managing other areas of their money, for example personal loans, store and credit cards and household bills.

Dean Mirfin, business development director for KRS, said: “Whilst this analysis is based on those who have released equity from their home, if this is only part reflective of pensioners as a whole, then this is of huge concern. The rising cost of living is increasingly affecting all of us today, but it is the older generations that are feeling the pinch more than others. With new estimates from Age Concern putting the number of pensioner households living in fuel poverty at 2.25 million, with an estimated 250,000 pensioner households pushed into fuel poverty by the price rises this year alone, many have little income left to enjoy their twilight years.”

Chris Tapp, director of Credit Action, revealed that increasing numbers of people are facing “tough times” as a result of surging utility bills and food costs. In addition it was suggested that it is important for consumers to keep track of their spending and that those who are concerned about their ability to manage money should take action as soon as possible.

Findings from the equity release firm also indicated that around half of single pensioners have an annual pension income of less than 6,000 pounds. Such consumers, it was reported, contribute some 218 pounds to their mortgage each month, leaving them with about 282 pounds to meet all other expenses - including council tax, household bills, food and clothing.

Consumers concerned about their capacity to pay off their mortgage and meet other areas of financial demand might wish to consider applying for a debt consolidation loan. By getting such a loan it may be possible for borrowers to merge numerous spending commitments into a single low-cost monthly repayment. This may be of particular assistance to older people after Engage Mutual Assurance recently revealed that about half of retired Britons have felt forced to make cutbacks on their spending during the current climate of rising inflation and living costs. It was indicated that the cost of utility bills is the largest area of concern for older people.

Loan Arrangers providing you with breaking debt consolidation loans news.