Its analysis shows up to 103,000 over-65 households are paying mortgages with around 81,000 households in the 65-74 age group and 22,000 in over-75 age groups.
The high number of over-65s still clearing home loans reflects changing work patterns with more people working past traditional retirement ages and the rising age of first-time buyers, More 2 Life believes.
But it warns that the numbers paying off loans past 65 is a potential mortgage timebomb 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 estimates 150,000 interest-only loans will mature each year until 2020.
More 2 Life is helping to tackle the problem with the launch of the first equity release plan which enables customers to continue to pay interest while protecting the equity in their property and accessing additional funds.
Jon King, Managing Director of More 2 Life, said:
“There is a potential mortgage timebomb 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.
“The Interest Choice Plan enables people who can afford to pay interest to cut debts while protecting the equity in their home as well as providing much needed flexibility. Innovation is the key to tackling mortgage market issues and helping customers.”
