Of these borrowers, almost 40% are 65-74 year olds, and over half (56%) are over 75.
Some 41% of over-65 year olds with a mortgage are on an interest-only product, More 2 life research has revealed.
Of these borrowers, almost 40% are 65-74 year olds, and over half (56%) are over 75.
The research highlights that individuals who do not have a separate savings vehicle to pay off the lump sum at the end of their interest-only mortgage could face a funding crisis in retirement.
Dave Harris, managing director at more 2 life, said: “This new research shows that the number of interest-only mortgages among older homeowners will continue to be an issue as these begin to mature in the next decade.
“Advisers will be crucial in identifying if equity release can help their clients and this is an opportunity for them to expand their offering to clients.”
For 75-84 year olds, average unsecured debt has risen 201% between 2006 and 2014, whilst for the over-85’s debt levels increased by 218% in the same time period.
Harris added: “The interest-only issue is not going to go away and as our research shows advisers and lenders need to work together in the interests of our sector and our customers.”
