Retired homeowners still have mortgage debt

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by Kay Murchie

A recent study by Scottish Widows has established that the average outstanding mortgage debt is £38,000 with 1 in 8 retired homeowners owing at least £50,000 on their home.

A spokesperson for Scottish Widows said their research shows that by the time they reach retirement, a considerable amount of pensioners still have a mortgage outstanding on their property.

Scottish Widows added that the position is no better in the short-term debt sector. Homeowners drawing their pension have an average of nearly £6,000 in outstanding personal debts which include unsecured loans and credit cards.

Those in their 50s still have an average debt of £54,300. Four in ten are still paying a mortgage whereas those in their early 60s have an average debt of £42,800.

The group advised that those reaching retirement in the next few years must consider how best to manage their finances when drawing a pension.

Finally, 1 in 12 retired homeowners still have a dependant child living with them, 16% of whom are aged over 35.