UK’s Over-50s Mortgage Debt Crisis: A Regional Breakdown
A growing number of people in their 50s and beyond are approaching retirement with significant mortgage debts, according to research from life insurance group SunLife, as reported by the Mirror. The study reveals that 14% of over-50s in the UK are still paying off mortgages, with some regions experiencing much higher rates than others.
The area with the highest proportion of over-50s with mortgages was Northern Ireland, where 20% of this age group still make repayments, with an average debt of £50,409.09. The North West of England followed closely, with 19% of over-50s having a mortgage, and an average of £48,839.55 outstanding. In contrast, London had the highest average mortgage debt, with £96,471.43 left to pay, despite only 8% of over-50s having a mortgage.
The Mirror reports that East Anglia had the second-highest average mortgage debt, with £97,015.63 outstanding, while the South East had an average of £95,905.77 left to pay. Scotland had the highest percentage of people with some form of debt, with 53% of those surveyed having debts to repay.
Mark Screeton, CEO of SunLife, was quoted by the Mirror as saying: "Our research shows a clear ‘postcode lottery’ when it comes to retirement, where people’s ability to enjoy later life appears to be impacted by where they live. Whether it is mortgage repayments dragging into retirement or higher levels of consumer debt, older people in some areas are facing greater financial concerns than others." He also warned that older Londoners may be struggling due to a combination of low homeownership, high debt, and below-average income.
The research also highlighted the monthly mortgage repayment burden faced by over-50s in different regions. The average mortgage holder in London pays £1,229.79 per month, with an average income of £31,164.34, or around £2,590 per month, meaning almost half of their monthly income goes towards their mortgage. The South East and North East had the next highest average mortgage repayments, with £1,223.67 and £1,196.69 per month, respectively.
The full survey results, as reported by the Mirror, show the percentage of over-50s with a mortgage and the average debt in each region:
- Northern Ireland: 20% – £50,409.09
- North West: 19% – £48,839.55
- South East: 16% – £95,905.77
- East Anglia: 16% – £97,015.63
- Yorkshire and Humberside: 16% – £60,812.54
- South West: 15% – £72,552.15
- East Midlands: 13% – £61,352.38
- North East: 12% – £64,915.38
- Scotland: 10% – £43,235.29
- Wales: 11% – £52,901.69
- West Midlands: 11% – £33,541.82
- London: 8% – £96,471.43
As reported by the Mirror, the study highlights the significant regional disparities in mortgage debt among over-50s in the UK, with many facing financial uncertainty in retirement.
