Over one in ten retirees still had mortgage debt when they retired, of which 9% were on a repayment mortgage and 4% had an interest-only mortgage, according to recent research from LV=.
In its survey, the financial services provider explored whether people were retiring without having fully paid off their mortgage. In order to pay off their mortgage debt, over half (56%) said they paid the mortgage debt with their pension/lump sum. This can be a sensible action to take, but will have reduced their retirement income, LV= said. "Due to property price inflation, mortgage terms today are much longer than they were historically, and therefore many people may find themselves at retirement age without having fully paid off their mortgage." Consistent with this, the research...
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