'More pensioners' must manage debt on mortgages
'More pensioners' must manage debt on mortgages
- Tuesday, 21 April 2009A greater number of pensioners may be in need of
debt management assistance such as equity release because of outstanding mortgages in the coming years, according to new research from Key Retirement Solutions.
The group found that the average mortgage debt faced by people over the age of 65 is £43,069.
It suggested that in some cases, this could have been caused by a shortfall from an endowment or other form of investment - which may have caused borrowers to be faced with mortgage debt they had not anticipated in their retirement.
Dean Mirfin, director of Key Retirement Solutions, said the "potential scale" of the problem is concerning.
He said: "It does not ... come as a surprise that many of those faced with this scenario are looking to equity release as a solution to eradicate their mortgage debt to free up much-needed income to further enhance their retirement years."
According to figures compiled by Axa, some 780,448 people have taken on an Individual Voluntary Arrangement (IVA) to manage their debts as a result of the credit crunch.

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