Many Retirees Feeling the Weight of Mortgage and Other Unpaid Debt
According to some startling data in a recent report, 25% of those planning on stepping into retirement this year will have a mortgage and other similar debt to repay. The report also said the average person will owe almost £25,000. It is forecasted that up to 44% of those retiring in London will be retiring in debt as well. The report lays out the results from a study completed by the Financial Conduct Authority.
A possible solution to some of the growing number of people attempting to retire but simply cannot, might be a remortgage. This could bring down their monthly mortgage payment and make it possible to access home equity to be used to pay off other old debt aside from their monthly mortgage.
It is possible to apply for a remortgage online and approval is typically granted in a few days, not weeks. The process has been streamlined and can now be completed in a short amount of time.
Vince Smith-Hughes, a retirement income expert with the Prudential, commented on the issues facing many retirees, saying: “For most people the move from work into retirement will see them having to cope with a drop in their income. So having to use precious retirement income to pay off debts could make life even more tricky for the newly retired.”
Lenders are currently taking extra steps to offer remortgage packages to fit any type of financial situation. Interest rates are quite low which gives lenders flexibility in the types of deals they have to offer.