Abbey finds that mortgages will eat into retirement income

01 December 2004
Homeowners could be left paying back their mortgages deep into retirement, Abbey has found.

The bank reports that 47 per cent of British mortgage-holders have policies that will see them still owing money on their homes after retirement.

In 1992 just 26 per cent of mortgage holders were in this position.

Moreover, 71 per cent of mortgage holders said they were relying on increases to the value of their home to pay off their mortgage.

"Our concern is that so many people rely solely on their home and the equity in it rather than savings and investments to pay for old age and long-term care," said Abbey customer director Angus Porter.

"Starting to put money away now on a regular basis could prove to be a real help in later life."

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