Abbey mortgages points to retirement borrowing

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Abbey mortgages points to retirement borrowing

Many homeowners will face hardship in retirement as they will still be paying off their mortgage, Abbey has found.

According to a new report by the bank, nearly half (47 per cent) of Britain's ten million mortgage-holders will still owe money on their homes when they retire. This figure is up from 26 per cent of mortgage holders in 1992.

Abbey has linked this trend to the house price boom, which means potential buyers have had to take on larger loans and repay them over a longer period.

Over two-thirds of home owners (71 per cent) said they were relying on the value of their home increasing to pay off their mortgage.

Abbey customer director Angus Porter said: "Our concern is that so many people rely solely on their home and the equity in it rather than savings and investments to pay for old age and long-term care.

"Starting to put money away now on a regular basis could prove to be a real help in later life."