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More Than A Million Pensioners Will Have A Mortgage

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8129472/More-than-a-million-pensioners-will-have-a-mortgage.html

There are already almost 250,000 people aged over 65 who are repaying mortgages. Figures disclosed that a further one million home owners approaching retirement had yet to clear their mortgage debts.

Experts said that within five years, the number of pensioners with mortgages would rise to more than one million.

The trend was expected to lead to many pensioners facing financial hardship as they struggled to pay off debts from the dwindling value of their pensions. Share prices and savings rates fell during the credit crunch, leaving many pensioners without the money to pay off their home loans.

Ros Altmann, the director general of the Saga Group, said: “It is not going to take very long to get to a million pensioners with a mortgage.

“A lot of pensioners are relying on endowment policies or lump sums from their pensions to pay back their mortgage debt. But these things have just not worked out.”

Melanie Bien, of Private Finance, the mortgage broker, said: “While most of us hope to pay our mortgage off long before we retire, an increasing number of home owners simply can’t afford to.

“Instead, they are continuing with their mortgage well into retirement, using their bricks and mortar to raise cash to live on, and to help their children and grandchildren with their own property purchases.”

But don't they realise the house is the pension.. O right that's not going to quite work out either...

Still at least everyone apart from the bankers can work until dead.

There are too many people carrying debt, still at least if these people are still paying of the mortgage they'll have plenty of free income to spend in the wider economy.....

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More Than A Million Pensioners Will Have A Mortgage

Well I know of 5 pensioners still with a mortgage. They borrowed to buy their holiday homes in Spain or Portugal.

No problem when we are not there say they we can let it out which will help to pay the remortgage. :rolleyes:

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Leaving your mortgage unpaid when you are retired is a top idea, I would have to recommend it.

After all, not paying back the mortgage allows you to spend more money before you are 65, and then when you are retired, you can get the state to force the taxpayer to pay your mortgage via SMI for the rest of your days.

Paying off your mortgage before you retire is so passe.

Expect to see this sort of nonsense increase as more realise they can use this to stiff the taxpayer, and in consequence watch the government's deficit continue to increase, despite what they told the markets.

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then when you are retired, you can get the state to force the taxpayer to pay your mortgage via SMI for the rest of your days.

Only if one (currently) decides to live just 2 years after retiring - SMI is time-limited to 2 years at the mo

"Get the state" to extend that or remove time limit altogether - don't think it is possible, however, if this happens, expect the the supply of SMI recipients to increase.

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It is not getting the mortgage paid it is getting the care home fees paid.

What they are doing is transfering cash to the kids by paying the deposits on the houses

remortaging the house and spunking it on crusies etc.

Then when the care home beckons it will be I have no cash the state must pay.

What a state we are in.

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Only if one (currently) decides to live just 2 years after retiring - SMI is time-limited to 2 years at the mo

"Get the state" to extend that or remove time limit altogether - don't think it is possible, however, if this happens, expect the the supply of SMI recipients to increase.

SMI is currentlypaid in perpetuity if you are receiving pension credit.

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Plus, 30% of SMI recipients are pensioners....

Don't have the link but it was added to the blog a week or two ago.

So you pay taxes to keep them in their homes and more taxes to keep them alive as long as possible.

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That 1 million is just now. When the boomers start leaving the workforce and taking pensions, en masse, from around now through to 2020+, there are going to be a heck of a lot more on this figure. A heck of a lot.

Edited by cashinmattress

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That 1 million is just now. When the boomers start leaving the workforce and taking pensions, en masse, from around now through to 2020+, there are going to be a heck of a lot more on this figure. A heck of a lot.

add in raised interest rates owing to large western govt borrowing over the time - and this gives us a secular bear market in UK properdie (at the least, possibly france etc too)

Edited by Si1

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my customer will be nearing retirement age soon.

has two mortgages.

both IO.

Is there a limit to the number of mortgages you can have SMI'd?

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Does this smack anyone else as ridiculous? What is classed as pension credit?

it is ridiculous and unfair.

Pension credit is what you get if you have less than a certain amount of savings, no personal pension or SERPs, and it (tax-free) tops up your basic state pension (however small it may be based on years NI contributions) up to about £132 for a singleton and about £200 for a couple. In addition you get warmfront grants, housing benefit (or SMI if you own a property), council tax benefit, cold weather payments and so on. Oh and you pay no income tax at all.

So many people who were careful and paid off their mortgage, and paid into a pitiful personal pension now find themselves worse off than those who didn't. SMI should be for those who have temporarily lost their jobs and expect to get another not for those on pension credit or IS. This always rattles my cage. :D

Edited by olliegog

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Life is.

Always has been.

Always will be.

its what the Tories mean by making it worth working.

its to introduce fairness and reward for toil. then they frack up with the child benefit proposals.

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it is ridiculous and unfair.

Pension credit is what you get if you have less than a certain amount of savings, no personal pension or SERPs, and it (tax-free) tops up your basic state pension (however small it may be based on years NI contributions) up to about £132 for a singleton and about £200 for a couple. In addition you get warmfront grants, housing benefit (or SMI if you own a property), council tax benefit, cold weather payments and so on. Oh and you pay no income tax at all.

So many people who were careful and paid off their mortgage, and paid into a pitiful personal pension now find themselves worse off than those who didn't. SMI should be for those who have temporarily lost their jobs and expect to get another not for those on pension credit or IS. This always rattles my cage. :D

pension credit was introduced by Gordon Brown in order to buy votes

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Sorry guys. wtf am SMI? Just in case I need some. :)

Support for Mortgage Interest.. Bit of a misnomer, since (until last month) 98% of people were getting more than their interest paid, they were getting healthy chunks of capital repaid off their mortgage. Now "only" 50% of claimants are in receipt of full interest and some capital repayment.

There are 225,000 claimants. It costs us all a fortune.

It's also unfair in that if you've got a mortgage, you're bailed out.. If you're in rented accomodation you're out of luck.

If you're not retired, you can only claim it for 2 years, if you're retired you can claim it until the mortgage is repaid.. So, if you've retired, do some equity release buy that villa in spain you've dreamed of, then fall behind on your UK mortgage repayments and let taxpayers pay it for you.

Edited by exiges

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this benefit is bound to end.

the people that issued them to a person without means to pay the full term should be forced to eat it.

the place should be sold to recoup the benefits paid and the person moved to premised more fitting their contribution.

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this benefit is bound to end.

the people that issued them to a person without means to pay the full term should be forced to eat it.

the place should be sold to recoup the benefits paid and the person moved to premised more fitting their contribution.

Buckingham Palace or Number 10?

Edited by Tamara De Lempicka

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  • 246 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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