Four in 10 mortgages held by those who will be at retirement age at maturity

Based on new data published by Equifax, it also found a quarter of these mortgages are held by those who will be over the age of 70 at the time of the loan’s maturity. Meanwhile, of the identified borrowers whose loans won’t mature until they’re past 66, 40% are 55 or over and 16% are 55 plus and have a remaining mortgage balance of more than £100,000. 

It comes during a period which has seen UK interest rates climb to a 15-year high of 5.25%, with average monthly mortgage repayments having seen a 15% year-on-year increase – while the number of mortgages with monthly repayments of more than £1,000 has seen a 28% year-on-year increase.  

Solutions that have been sought by customers include extending their loans or delaying their mortgage’s maturity, however this may mean more borrowers carry an unexpected mortgage debt with them into their retirement years.  

In addition to this, older customers who are already close to retiring may find themselves unable to get further extensions from lenders.  

Equifax UK’s chief data and analytics officer Paul Heywood said: “Despite inflationary pressures slowing down and early signs of rate cuts among lenders, the high interest rate environment means there are still tough times ahead for mortgage borrowers. 

“Faced with higher monthly repayments, many borrowers are extending their loan terms for years into the future, hoping to spread out costs to ease the financial burden. Despite inflationary pressures slowing down and early signs of rate cuts among lenders, the high interest rate environment means there are still tough times ahead for mortgage borrowers.

“Faced with higher monthly repayments, many borrowers are extending their loan terms for years into the future, hoping to spread out costs to ease the financial burden.”