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Wednesday 5th November 2014More than half a million over-50s face having to sell their home because they have no other way to clear the shortfall on their interest-only mortgage.
Two-thirds of homeowners who have interest-only mortgages say their endowment won’t pay it off.
And 30% of over-50s have 'no way' of making up the average shortfall of more than £42,000 aside from selling their home, according to new research from Saga Personal Finance.
The remaining two-thirds have made alternative plans to pay off their mortgage, such as dipping into savings and investments, or extending their mortgage to give them extra time to pay it off.
Equity release may also be a solution for many.
Saga's data also reveals that one in five Britons are still paying off a mortgage in their 70s. More than 900,000 still have an average mortgage bill of £38,000.
This leaves the over-70s saddled with an "extraordinary" total mortgage debt of £35.2 billion.
Many Britons have had their retirement blighted by the "bitter burden of mortgage debt", said Jeff Bromage, chief operating officer at Saga Personal Finance.
“Being saddled with mortgage debt well into your retirement is far from ideal as it means keeping an eye on the coffers when you should making the most of life.
“Millions of British homeowners have been hit hard by underperforming endowments.
"Thankfully, there are options available, with a growing number of people turning to equity release to avoid selling their home.
"Upping sticks is probably the least-favoured option for many facing a shortfall, as their home is so much more than bricks and mortar and will hold so many happy...
Wednesday 22nd October 2014Renting is becoming a long-term living option for an increasing amount of Britons, according to the results of a survey of 3,500 private tenants.
Almost a quarter of those surveyed (24%) by Knight Frank in association with YouGov said that they expected to always rent a property.
A smaller proportion, 15%, said they expect to be in the Private Rented Sector (PRS) for a further five or more years, as another 24% said they expect to leave the sector within two years.
The difficulties of getting on the housing ladder for many renters have been well documented, but, according to the survey, 32% of tenants admitted to living in rented property because it suits their lifestyle and/or they don’t want the burden of a mortgage.
When investigating tenants’ wants, the research found that more than a third of respondents said they want to live within a six minute walk of their nearest train station or bus stop, with 78% saying they want to be within 1km of local transport links.
What’s more, for younger age groups, finding accommodation in a central location is especially important - 53% of 18-24 year olds said they would live in a smaller studio flat in a central location if it made the rent more affordable.
The amenity that most private tenants are prepared to pay extra for is off-street parking, this is alongside fully furnished properties which attract a premium, particularly among the 18-24 demographic.
“The majority of renters do not view the PRS as just a ‘short-term’ move,” explains Grainne Gilmore, Knight Frank’s Head of UK Residential Research. “Less than a quarter of tenants expect to leave the sector within two years.”
Gilmore said that the increased demand for privately rented property over a longer period of time was due to a combination of high house prices, and an increasingly mobile, flexible younger generation.
Tim Hyatt, Head of Lettings at Knight Frank, added: “The rising significance of the private rented sector is creating many opportunities for investors, especially as we are starting to see the advent of large-scale professional...
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