Mortgage repayments remain a key issue for many of those approaching retirement, research from Just Group has found.
Over a quarter (27%) of those born between 1965 and 1980 are not confident they would pay off their mortgage before age 67, with 13% firmly believing they would be unable to and a further 14% unsure if they could.
The findings revealed those living in London felt far less confident than those living in the rest of the UK, with 26% of London residents with a mortgage not expecting to repay their mortgage before 67, compared to the national average of 13%.
The rising cost of borrowing was found to be a key driver behind people’s repayment fears. Nearly half (45%) of those aged between 42 and 58 said it was taking them longer to pay off their mortgage than they had hoped, with 34% stating that they had needed to extend the mortgage term to reduce monthly payments.
A further 32% said they had to extend the term to pay for home improvements and more than a fifth (23%) said they extended the term due to increased interest payments.
Stephen Lowe, group communications director at Just Group, said: “About three-quarters of the Gen X cohort own their own homes but many are struggling to clear their mortgage within the expected time frame. This group find their finances stretched and are faced with the unenviable choice of either clearing the mortgage or saving for a pension.
“People’s budgets are being squeezed as they juggle competing pressures. As a result, we are seeing growing anxiety among this demographic that many will approach retirement still carrying the burden of making their mortgage repayments.”
