1.5m UK adults retire with outstanding home loans - LV=

'Navigating the cost of living crisis'

Julia Bahr
clock • 3 min read

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Rise of the CIRP: Centralised investment propositions 2.0

Rise of the CIRP: Centralised investment propositions 2.0

Do I need a retirement proposition as well as an investment proposition?

Zayd Ahmad
clock 08 July 2024 • 4 min read
Advisers lack confidence in retirement strategy following FCA's review

Advisers lack confidence in retirement strategy following FCA's review

Only 2% of advisers are confident in their retirement strategy

Isabel Baxter
clock 04 June 2024 • 1 min read
Invesco and Just Group co-launch MPS-backed retirement solution

Invesco and Just Group co-launch MPS-backed retirement solution

‘There needs to be greater product innovation in retirement solutions’

Hope Coumbe
clock 03 June 2024 • 1 min read