Retirement is viewed as a time of financial freedom, when people can say goodbye to many of life’s stresses and enjoy the lifestyle they desire. But for many Britons, their golden years are being turned into a nightmare as they struggle with mortgage obligations.
Recent data has shown an alarming number of British pensioners are finding themselves stuck in their mortgages with little or no way out.
Leon Diamond, CEO of LiveMore Capital, spoke exclusively to Express.co.uk and voiced his concerns regarding the number of pensioners still paying off their mortgages.
He said: “LiveMore estimates that over 30 percent of people over 50 with mortgages are paying a standard variable rate (SVR).
“As inflation remains elevated, we believe that the Bank of England will be forced to increase base rates, leading to borrowers paying more for their monthly mortgage.
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Some have estimated inflation could continue to soar in 2022, exacerbating concerns over the financial impact on British people.
Mr Diamond explained that a lack of financial flexibility can be crippling, especially for older people.
He said: “Being able to control expenses during an inflationary period is absolutely key for financial preservation.
“This is particularly true for those thinking about retirement, who should be able to fix rates for longer than five years to help with cash flow planning.
“This, coupled with rising inflation rates, leaves them most susceptible to being stuck in a costly mortgage with little alternative option but to sell their property or choose equity release.”
He warned that these choices are not suitable for many, appearing to leave them between a rock and a hard place.
The problems older people are experiencing relating to their mortgages could be depriving them of the opportunity to stay in the properties they have made home for themselves and their families.
Anyone going through issues such as these may be able to get help or advice through the MoneyHelper site or by reaching out to Citizens Advice.