20% of the UK’s over-55s still have an outstanding mortgage balance, Aviva has established.
Of those who have a mortgage still to pay off the average amount owed is £67,663.
According to the latest Real Retirement Report from Aviva,, there are a still a high proportion of over-55 who are likely to be negatively affected by increases to lenders’ SVRs indeed, for someone on a fixed income aged 75 and paying off an £87,500 mortgage this will be a shock.
The report also found that the UK’s over-55s also own property worth considerably more than the UK average (£160,907 according to January data from Halifax). The mean average value of homes owned by the over-55s is £235,608, and this increases the older people become.
Aviva argues that with equity levels also high and average incomes relatively low, it builds on the likelihood that equity release products will become increasingly popular among the UK’s over-55s.
Clive Bolton, ‘at retirement’ director at Aviva, said: “The recent announcements by lenders of an increase to their SVRs will affect a large number of the UK’s over-55s – many of whom will be on a fixed income and will see their income come under pressure. Unfortunately unexpected pressures finances can arise at any time and the last few years before retirement are a crucial time for people as they plan their income in retirement. This highlights the need for people to prepare for their retirement as early as possible.