UK homeowners carrying burden of mortgage into retirement

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.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.

Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.