According to a recent survey, a growing number of homeowners expect to continue making mortgage repayments after the age of 65. The research conducted by LV= found that 32% of mortgage holders do not believe they will pay off their mortgage by age 65. This trend is largely attributed to high inflation and longer mortgage terms. LV= also highlighted that one in ten retirees still had mortgage debt when they retired, with an average outstanding amount of £38,000.

To address the challenges faced by retirees, 28% of homeowners surveyed said they would consider a lifetime mortgage, while 3% already had one. The appeal of lifetime mortgages is highlighted by features such as downsizing protection, the ability to transfer the mortgage to another property, and fixed early repayment charges. Additionally, 24% of respondents found the option to repay up to 10% of the lifetime mortgage early without incurring charges reassuring.

David Stevens, director of savings and retirement at LV=, explained that high inflation and longer mortgage terms could result in less discretionary income for retirees. This may limit their ability to enjoy their retirement as planned. Stevens also expressed concerns over mortgage payment defaults, as their latest quarterly survey showed that 300,000 mortgage holders had fallen behind on payments in the past three months.

Overall, the survey indicates that a significant portion of mortgage holders expect to continue making repayments into retirement, highlighting the need for strategic planning for those approaching retirement age.