- Friday, 30 April 2010Some retired homeowners are still in debt because of their mortgages and other factors such as credit card debt, claims an expert.
Andy Pratt, chief operating officer at Alexander Hall, a mortgage broker, thinks that pensioners who still owe money on their houses should come to an agreement with their lenders to repay the debt.
He was also surprised that 27 per cent of over-65s have not yet paid off their mortgages, according to figures by Key Retirement Solutions, but said that there are a number of reasons for this.
Mr Pratt said: "With the rates as they are at the moment, somebody may not have actually paid down their mortgage; they may be using that money elsewhere and keeping that debt going because it is a cheaper way to borrow."
It is thought that some retired borrowers are still in debt because they have helped to buy property for their children or they do not take advantage of low interest rates to make mortgage overpayments.
Key Retirement Solutions' research showed that the average owed by pensioners who are still paying off their mortgages is £45,602.
What is more, 20 per cent of over-65s had outstanding loans for an average amount of £10,447.
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