Four in 10 borrowers will be retired when their mortgages mature

Equifax data has found that 41 per cent of live mortgages in the UK are held by customers who will be beyond the retirement age of 66 at maturity.

Over a quarter of these are held by those who will be over 70 at maturity.  

Of the identified group of UK mortgage borrowers whose loans will not mature until they are past 66, 40 per cent are already aged 55 or over, and 16 per cent of those 55-plus have a remaining mortgage balance over £100,000. 

Further, nearly half as many borrowers are 55 or more and have contractual monthly repayments over £1,000. 

Rising interest rates, paired with other inflationary pressures, have created an unsustainable situation for many mortgage borrowers of all ages, claims Equifax. With UK interest rates climbing to a 15-year high of 5.25 per cent, average monthly mortgage repayments have seen a 15 per cent year-on-year increase. 

The number of mortgages with monthly repayments over £1,000 has also seen a 28 per cent year-on-year increase.  

A solution many have sought is extending their loan terms or delaying mortgage maturity, so they can have more time to complete their repayments. However, this may mean more borrowers carry an unexpected mortgage debt with them into their retirement years.   

Meanwhile, Equifax says it’s concerned that older customers who are already close to retiring may find themselves unable to get further extensions from lenders, and instead face increased monthly repayments alongside other heightened expenses like food and utilities.

For consumers borrowing into retirement age, the average outstanding mortgage balance for those over 55 is £116,261, with the average monthly repayment for this group sitting at £680.

Equifax data has found that 41 per cent of live mortgages in the UK are held by customers who will be beyond the retirement age of 66 at maturity.

Over a quarter of these are held by those who will be over 70 at maturity.  

Of the identified group of UK mortgage borrowers whose loans will not mature until they are past 66, 40 per cent are already aged 55 or over, and 16 per cent of those 55-plus have a remaining mortgage balance over £100,000. 

Further, nearly half as many borrowers are 55 or more and have contractual monthly repayments over £1,000. 

Rising interest rates, paired with other inflationary pressures, have created an unsustainable situation for many mortgage borrowers of all ages, claims Equifax. With UK interest rates climbing to a 15-year high of 5.25 per cent, average monthly mortgage repayments have seen a 15 per cent year-on-year increase. 

The number of mortgages with monthly repayments over £1,000 has also seen a 28 per cent year-on-year increase.  

A solution many have sought is extending their loan terms or delaying mortgage maturity, so they can have more time to complete their repayments. However, this may mean more borrowers carry an unexpected mortgage debt with them into their retirement years.   

Meanwhile, Equifax says it’s concerned that older customers who are already close to retiring may find themselves unable to get further extensions from lenders, and instead face increased monthly repayments alongside other heightened expenses like food and utilities.

For consumers borrowing into retirement age, the average outstanding mortgage balance for those over 55 is £116,261, with the average monthly repayment for this group sitting at £680.