Equity release demand expected as half a million retirees will still owe money on mortgage

Published: 31/08/2012

Up to half a million homeowners could still owe money on their mortgages when they finally come to retire, according to new figures from the Equity Release Council (ERC).

After questioning 2,000 individuals, the ERC found the average homeowner will still have an outstanding balance of £52,446 on their property when they retire.

Key figures:

• 16 per cent of 35 – 44 year olds expect to have £43,345 to repay when they retire
• 17 per cent of 45 – 54 year olds anticipate they will have £48,037 on their mortgage
• 23 per cent of 55 – 64 year olds believe they will retire owing an average of £65,955.

The figures have left the Director General of the ERC, Andrea Rozario, expecting a boom in equity release activity.

“Many people find that due to unforeseen circumstances they enter retirement with a small amount of debt but the fact that over 400,000 people expect to still be repaying their mortgage when they retire is shocking.”

Content correct at time of publication