Quarter of over-55s fear they will not be able to afford their mortgage – Perenna – The Intermediary

Financial anxieties driven by mortgage affordability and accessibility in the over-55s are rife, with more than a quarter (28%) fearing they will not be able to afford their mortgage if moved onto their lender’s Standard Variable Rate (SVR), research from Perenna has revealed.

An additional 36% would find it difficult to manage repayments, bringing the total who could struggle to almost two-thirds (64%).

More than a third (37%) of older borrowers said they were considering selling their homes to relocate or downsize.

This rose to nearly half in London (48%), where property prices are 34% higher than the average property price in the UK.

Three-fifths (60%) said there was a lack of choice and financial products tailored to them, and 36% found their mortgage restrictive because of their age profile.

Nearly a fifth (18%) of respondents said mortgage repayments have restricted their ability to travel or engage with leisure activities.

A further 17% reported an impact on their financial stability and ability to support their family, while 9% postponed retirement plans to pay off their mortgage.

The research came as Perenna launched its Retirement Interest Only (RIO) mortgage for those aged over 55.

Arjan Verbeek, CEO and co-founder of Perenna said: “The current UK mortgage market is ageist.

“A whole demographic is being unfairly excluded and left behind, because of their age. We think that is wrong.

“The lack of options available for people over 55, underpinned by a fear of being trapped in their provider’s SVR, is putting many in financial distress. This shouldn’t be the case.

“Retirees should have solutions available to live the lives they desire and deserve.

“Our new long-term fixed rate retirement interest-only mortgage is a step towards financial freedom for older homeowners.”