Retirement: 20% of people retire owing money

PrudentialShocking new figures have revealed that around 20% of people are retiring, despite the fact they are still in debt. The figures from the Prudential show that 1 in 5 retirees still have personal loans, credit cards or mortgages outstanding when they finish work, with the average debt totalling £31,200. As shocking as these figures might be, they are actually a slight improvement on last year, when the average amount of debt, for people retiring whilst still owing money, was £38,200. Retiring with debt Experts believe there ...

Housing & mortgage round up: Mortgage lending falls, whilst lenders call for ban on Interest Only mortgage

Housing & mortgage round upMortgage approvals fell significantly last month whilst some lenders call for a ban on Interest Only mortgages. At the same time there are signs of life in the government’s NewBuy mortgage scheme. Mortgage lending falls 19% in April Latest figures show that £10 billion was lent to mortgage borrowers in April, higher than the same time last year but down 19% on March....

Housing round up: Two surveys show house prices fall whilst Standard Variable Rates rise

Housing & mortgage round upA packed housing round up this week. Firstly, two surveys indicate house prices have fallen over the past couple of months and continue to do so year on year. Secondly, the mortgage market looks as though it will continue to get harder for borrowers who want an Interest Only mortgage after the announcement by the Co-operative Bank that they are pulling out of this type of lending. Finally, over one million borrowers have seen their mortgage payments ...

How to avoid falling into the Interest Only mortgage trap when you retire

No surprise as interest rates on hold for another month_istockNew research, from the Independent on Sunday newspaper, has found that more than a quarter of a million people with Interest Only mortgages could retire by the end of this decade whilst still having the debt outstanding. Popularity of Interest Only mortgages Interest Only mortgages were very popular in the 80’s and 90’s when they were often set up with Endowments or ISAs (Individual Savings Accounts) as repayment vehicles. However, ...