One In Ten Pensioners Still Paying Off A Mortgage

[OnionTerror]

http://www.dailymail.co.uk/news/article-1327168/One-pensioners-going-work-pay-mortgage.html

Nearly one in ten pensioners still have a mortgage, alarming research reveals today. Instead of enjoying retirement in the knowledge they own their home, many are having to keep on working. Some owe hundreds of thousands of pounds, and have no option but to remortgage.

A survey of 6,000 Britons for Saga, the company aimed at the over-50s, found that 8.6 per cent of over-65s have a mortgage. Dr Ros Altmann, director general of Saga, said: ‘There are a lot of people who are going to have to keep on working just to pay their debts. They have no choice.’

A separate report, from the economic research group Policis, suggests the problem will get worse. It found that 53 per cent of over-50s with a mortgage have a loan which stretches past their 65th birthday. Nearly two-thirds said they ‘intend to borrow into retirement to support their financial plans for later life’.

According to the Office for National Statistics, there are 866,000 Britons aged 65 or over with jobs. Dr Altmann said: ‘It is an indictment of the way our savings culture has almost fallen apart.’

And figures from the accountants RSM Tenon have revealed that the number of women over the age of 65 declared insolvent has jumped 42 per cent over the last year.

[Protect Rural England]

http://www.dailymail.co.uk/news/article-1327168/One-pensioners-going-work-pay-mortgage.html

It has nothing to do with how the savings culture has fallen apart.

It has everything to do with the fact that millions do not get paid enough to live because the taxation in this country is too high.

Start to think about direct and indirect taxes you pay. Total madness.

That is why 866,000 over 65's are still working and why in the years to come there will be millions more working.

The state pension doesn't even cover the council tax. What are you supposed to eat on?

Time to LOWER tax and get the economy going.

[GinAndPlatonic]

It has nothing to do with how the savings culture has fallen apart.

The state pension doesn't even cover the council tax.

I agree we are being taxed till death but don`t exaggerate. It does and is often paid, albeit indirectly via Council Tax benefit.

[olliegog]

the good news is that 9 out of ten have paid off their mortgage by the time they are pensioners

the ones who haven't are the MEWers or those who believe house prices only go up and have purchased second homes or moved up the 'ladder' beyond where they should be.

Actually council tax is my biggest expenditure per year about 1500 pounds - because I have 'savings of over 16K (rainy day money) ' I do not get council tax benefit and neither do a lot of pensioners (this is a common misconception that over 60s pay no tax or council tax - only if you are on pension credit and getting your mortgage paid for you as well )

[Bloo Loo]

I disagree, it has, anecdotally I know two couples, one recently retired and did pay it off before drawing his pension*, the other a typical fool who'd rather have a new car every three years (paid for via finance deals), than get rid of his mortgage debt and now he is moving, he has had to go to a mortgage broker to afford the next mortgage as no high street lender would touch them!

*The first could have paid it off sooner but gave his child an education, so fair play to him.

was the broker successful?

If so, HOW does a different person filling in a form make a difference to a lending decision?

[Mikhail Liebenstein]

It has nothing to do with how the savings culture has fallen apart.

It has everything to do with the fact that millions do not get paid enough to live because the taxation in this country is too high.

Start to think about direct and indirect taxes you pay. Total madness.

That is why 866,000 over 65's are still working and why in the years to come there will be millions more working.

The state pension doesn't even cover the council tax. What are you supposed to eat on?

Time to LOWER tax and get the economy going.

Agree 100%.  If I could have had half of my 40% tax and VAT back over the last 10 years, I could easily afford to retire.  I've easily given the tax man close to £500k in that time.  

I've had pretty much bugger all in return, except for the state keeping 10 families of pet chavs in a shoe box somewhere near Derby. They didn't even send me a sponsorship certificate.

[NorthamptonBear]

A separate report, from the economic research group Policis, suggests the problem will get worse. It found that 53 per cent of over-50s with a mortgage have a loan which stretches past their 65th birthday. Nearly two-thirds said they ‘intend to borrow into retirement to support their financial plans for later life’.

53% => perhaps some might overpay or inherit, but it suggests the problem will get worse.

2/3rds => ‘intend to borrow into retirement to support their financial plans for later life’ - what does that mean? Confused! They can't mean borrow money via banks etc - can they? How can it be paid back? Do they mean use house equity?

Mad! Wonder what the figures would be for those in their 40s? Will it just get worse?

[Bloo Loo]

53% => perhaps some might overpay or inherit, but it suggests the problem will get worse.

2/3rds => 'intend to borrow into retirement to support their financial plans for later life' - what does that mean? Confused! They can't mean borrow money via banks etc - can they? How can it be paid back? Do they mean use house equity?

Mad! Wonder what the figures would be for those in their 40s? Will it just get worse?

I have posted a couple of times about a client near pensioner age.

she has an IO Loan for 25 years for his 1 bed flat. IO..25 years. she is about 62 now, the loan would now be about 4 years old. He/she works in a care home part time.

thats not all.

at the time she entered into this "deal", he was persuaded to buy a BTL too...25 year IO...last time I saw he/she there was a void of two months.

the "sell" was that the BTL would pay not only the mortgage, but also a little extra for spending.

worked for a time.

thing is, she will be in his 80s at pay off...and its INTEREST ONLY.

Edited November 6, 2010 by Bloo Loo

[NorthamptonBear]

I have posted a couple of times about a client near pensioner age.

she has an IO Loan for 25 years for his 1 bed flat. IO..25 years. she is about 62 now, the loan would now be about 4 years old. He/she works in a care home part time.

thats not all.

at the time she entered into this "deal", he was persuaded to buy a BTL too...25 year IO...last time I saw he/she there was a void of two months.

the "sell" was that the BTL would pay not only the mortgage, but also a little extra for spending.

worked for a time.

thing is, she will be in his 80s at pay off...and its INTEREST ONLY.

I give up. Mad, mad, mad.

'This very nice man sweettalked me into fuucking up my last years of existence. He was ever so nice.'

Edited November 6, 2010 by NorthamptonBear

[Mikhail Liebenstein]

 Of course it could be logical for some pensioners to get into debt.

If they knew they had little to pass on , or hated their kids or just simply wanted to screw the system then it might be desirable to run up huge debts. 

If you wanted to be nice to your kids and lived in a rented house you could start gifting them all your savings and then start gifting them from your credits cards  and any loans etc, and then assuming you live 7 years and don't tell the kids where the money cam from, when you popped your clogs instead of leaving the kids money (which you have already done), you just leave the banks and credit card companies with a massive great bill.

[righttoleech]

I have posted a couple of times about a client near pensioner age.

she has an IO Loan for 25 years for his 1 bed flat. IO..25 years. she is about 62 now, the loan would now be about 4 years old. He/she works in a care home part time.

thats not all.

at the time she entered into this "deal", he was persuaded to buy a BTL too...25 year IO...last time I saw he/she there was a void of two months.

the "sell" was that the BTL would pay not only the mortgage, but also a little extra for spending.

worked for a time.

thing is, she will be in his 80s at pay off...and its INTEREST ONLY.

Interest only for 25 years? So assuming the borrower survives to the end of the term she will have to pay back the capital......(forced sale perhaps?). I would have thought that an advisor selling such person a BTL loan on top should be prosecuted for misselling. We have payed for bank bailouts as a result of this type of disgusting behaviour.

[Oliver Sutton]

It has nothing to do with how the savings culture has fallen apart.

It has everything to do with the fact that millions do not get paid enough to live because the taxation in this country is too high.

Funny how high taxation doesn't stop people taking exotic holidays, changing their mobile every year, car every other year or paying £50 to watch a football match.

[exiges]

Over 100,000 pensioners are having their mortgage paid off by us via SMI

[non frog]

That is the real scandal and if I am correct, for most claimants, there is no time limit.

But this is why taxes are so high. Moaning (not by yourself - but others in the thread) about high taxes is circulatory.

Old farts have mortgages because they are greedy and buying up all the property or MEW to give their kids a deposit or to buy a camper van. The statistics are crap and the Mail and other papers use it to try to get their moronic view of the world accepted as fact rather than the fantasy it is.

Why do people believe that pensioners are hard up, while at the same time label them as greedy boomers who have got everything? Both cannot be true. People over 65 or any other arbitrary age fall into rich and poor just like people under 6 or any other number you want to use. I'm fed up of this media drivel about "poor pensioners" - it is pure propaganda and time after time people fall for it.

[porca misèria]

It's the Wail, ferchrissake.

I expect they include the many who have taken a lifetime mortgage to release equity, payable (explicitly) on death. Can't see any downside to that for the pensioner: they have the property AND more money for life.

Not all pensioners have children to help out. Those who do may take a rational decision to bring the legacy forward by means of equity release - help the offspring buy a house at thirtysomething rather than have to wait 'til they're 60.

[porca misèria]

My eldest lad is nearly 22. Still find the hand going into the pocket all the time - pay his car insurance, pay for car repairs, pay a mobile phone debt he's run up because he took a contract out for an ex girlfriend who has landed him (me) with a £450 bill etc. etc. etc.

A car at 22!

That is today's truly stunning self-indulgence. Or in your case, self-indulgence by proxy, since it's your ickle lad.

[SarahBell]

Ahh yes 200k per child

So that's 400k I've spent on my children.

My eldest lad is nearly 22. Still find the hand going into the pocket all the time - pay his car insurance, pay for car repairs, pay a mobile phone debt he's run up because he took a contract out for an ex girlfriend who has landed him (me) with a £450 bill etc. etc. etc.

No wonder we're potless.

200k per child is insane.

It's not a real figure!

[porca misèria]

200k per child is insane.

It's not a real figure!

I expect it includes a few years off work ... make that five non-earning years for instance and you're a long way into that £200k.

If you're spinning propaganda, you take gross pay and exclude the benefits on the other side. After all, you're making a case for the latter.

[Ah-so]

I think that endowment mortgages are partly to blame. People who took out endowment mortgages in the 80s were often left with debts to pay at the end of the term. As a result, some people are paying mortgages in their retirement when they expected to be debt free.

[winkie]

No wonder we're potless.

[leicestersq]

It has nothing to do with how the savings culture has fallen apart.

It has everything to do with the fact that millions do not get paid enough to live because the taxation in this country is too high.

Start to think about direct and indirect taxes you pay. Total madness.

That is why 866,000 over 65's are still working and why in the years to come there will be millions more working.

The state pension doesn't even cover the council tax. What are you supposed to eat on?

Time to LOWER tax and get the economy going.

And the biggest most out of control area of government expenditure is ............PENSIONS.

You can see this most clearly with council tax, which has 25% of all you pay going to pay for local authority pensions. The national taxes are pretty much the same.

So how can you cut taxes without also cutting pensions? I don't see a fair way to do this, unless we make our young people even poorer than they are now.

[leicestersq]

Funny how high taxation doesn't stop people taking exotic holidays, changing their mobile every year, car every other year or paying £50 to watch a football match.

You are talking about the chavs there. High taxation pays for their benefits, so they do need high taxation.

[singlemalt]

Me and my momentary onscreen dyslexia. Initailly read the title as 'One In Ten Prisoners Still Paying Off A Mortgage'. Thought how the heck they doing that?

[cashinmattress]

I smell intergenerational mortgages in the wind.

[winkie]

I smell intergenerational mortgages in the wind.

Born with debt, die with debt.