Buyers of property in London and across the UK 'carrying debt into retirement'

Consumers are increasingly carrying mortgage debts into their retirement, a study has revealed.

According to Key Retirement Solutions, one-third of pensioners in the UK still owe money on their homes - amounting to £140 billion.

As a result, the company saw the number of people aged 65 and over using equity release increase by nearly 40 per cent last year, as people attempt to relieve the burden.

Those looking for somewhere to live in London may prefer to choose flats to rent in Camden and other boroughs in order to avoid such debt problems.

Commenting on the figures, director of charity Credit Action Chris Tapp said: "People have been forced to borrow more and borrow for longer to afford property. This debt dependency is hugely concerning and something we as a society need to urgently address."

Last week, director at the Association of Mortgage Intermediaries Robert Sinclair noted that mortgages are becoming increasingly difficult to come by for those with poor credit histories.

Written by Andy Britten

Published 20th April, 2009

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