UK homeowners carrying burden of mortgage into retirement

Written by Oliver Wade

The typical UK homeowner is still paying off their mortgage in retirement, with retirees aged between 64 and 75 still owing an average of £11,400 on their mortgage, according to the latest TISA and KPMG Savings Index.

Furthermore, the index found that the average UK homeowner over the age of 75 still has a mortgage debt of £3,200, while possessing around £93,900 in pension wealth.

While those between 65 and 74 have an average of £11,400 to pay off their mortgage, their pension is worth roughly £327,500. Those aged between 55 and 64 have the largest outstanding mortgage, on average needing to repay £36,500, and has saved £426,200.

However, while they may have the highest outstanding balance, those aged between 55 and 64 also have the most expensive property, with a typical property value of £354,800. Homeowners between 64 and 74 have a property worth £314,400 and over 75s £283,200.

Commenting on the data, TISA retirement policy manager Renny Biggins said: “Home ownership typically has the most significant impact on people's overall wealth and financial resilience, with the Savings Index indicating a positive correlation between home ownership and savings habits.

“However, it’s clear that the long-held assumption that your mortgage would be paid off once you reached retirement is no longer a sure thing. Though mortgage debt is still reducing with age cohorts, UK households are having to rely on pension wealth and other assets to pay off their mortgages during retirement.”

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