‘Mortgage bombshell’ – Pensioners are still paying off the cost of their homes

Hundreds of thousands of pensioners are facing a “mortgage bombshell” over soaring interest rates, it was warned.

Around 450,000 over 65s are still paying off the cost of their homes into retirement, according to official figures.

Half of those have savings and investments of under £3,000 to rely on with some having nothing set aside at all.

Shadow work and pensions secretary Jonathan Ashworth said: “Older people are at the sharp end of the Tory cost of living crisis due to soaring energy bills and out-of-control inflation.

“For 450,000 pensioners, the Tory mortgage bombshell risks being a further hammer blow to their life savings and living standards.”

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Labour analysis of government records found the number of mortgaged pensioners without any savings has risen by a third. 

In 2019-20, there were around 50,000 older people without a rainy day fund but that rose to 70,000 two years later. 

Half of all pensioners with a mortgage had savings of £3,000 or less in 2021-22, compared to 43 per cent in 2019-20.

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Silver Voices director Dennis Reed said older people were having to extend mortgages to cope with the cost of living crisis.

He added: “Lots of older people are asset rich and income poor and their incomes are fixed.

“These figures show the need to keep the triple lock in place because unless state pensions rise in line with inflation, people will struggle to make ends meet.”

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