More than 100,000 over-65 households are still paying mortgages totalling £1.36bn claims research from More 2 Life.
Its analysis showed up to 103,000 over-65 households are still repaying mortgage debt - 81,000 households fell within the 65-74 age group and 22,000 were aged over 75.
The high number of mortgagors aged over 65 reflects changing work patterns with more people working past traditional retirement ages and the rising age of first-time buyers, suggested More 2 Life.
But it warns that the numbers paying off loans past 65 is a potential mortgage time bomb which could leave pensioners at risk of struggling to make payments as their incomes reduce.
And it forecasts the issue is likely to become a bigger problem as more homeowners with interest-only mortgages come to the end of their term. The Council of Mortgage Lenders estimated 150,000 interest-only loans will mature each year until 2020.
Jon King, Managing Director of More 2 Life, said: “There is a potential mortgage time bomb ticking with pensioners paying home loans way past traditional retirement ages.
“Some can afford to pay off their mortgages but many will face income shocks and could really struggle if they still need to pay off a home loan as well as paying for the basics.”
David Sansome, Managing Director at Sansome & George said: “The situation where people are looking to repay mortgages beyond age 65 is increasing.
Retirement ages are moving up and so many will still have income from employment to fund their mortgages but everyone should have a plan to cover their obligations.
For many, downsizing is part of their retirement plan and at Sansome & George, we will be only too pleased to discuss the various options that are available including rental and equity release.”
