Expert surprised by number of pensioners with unpaid mortgages

Date:Thursday 29th April 2010
Author: Susanna Kavka

The quantity of pensioners that have not paid off their mortgage has surprised one expert, who has suggested potential reasons for the figure being so high.

Andy Pratt, chief operating officer at Alexander Hall, made his comments regarding research by Key Retirement Solutions, which found that 27 per cent of pensioners still have a mortgage and owe an average of £45,602.

In his view, the biggest contributing factor is the lifestyle that people intend to lead in old age, with many planning on working beyond the conventional retirement point, perhaps in a part-time role.

However, Mr Pratt pointed out that they may have simply found another use for their money, such as helping their children on to the property ladder or putting them through some form of education.

"Certainly 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," he added.