64% of over-55s would struggle to afford their mortgage lender's SVR

Over a quarter (28%) of over-55s fear they wouldn’t be able to afford their mortgage if it moved onto their lender’s standard variable rate (SVR), new research from Perenna reveals.

An additional 36% would find it difficult to manage repayments, bringing the total who could struggle to almost two-thirds (64%) and potentially putting many into financial distress.

Over a third (37%) are considering selling their homes to relocate or downsize. This rises to nearly half in London (48%), where property prices are 34% higher than the average property price in the UK.

The research also found that nearly two-thirds (60%) believe there is a lack of choice and financial products tailored to them, and over a third (36%) find their mortgage restrictive because of their age profile.

Nearly a fifth (18%) of respondents stated that mortgage repayments have restricted their ability to travel or engage with leisure activities.

A further 17% report an impact on their financial stability and ability to support their family, while 9% have postponed retirement plans to pay off their mortgage.

Arjan Verbeek, CEO and co-founder of Perenna, said: “The current UK mortgage market is ageist. A whole demographic is being unfairly excluded and left behind, because of their age. We think that is wrong.

“The lack of options available for people over 55, underpinned by a fear of being trapped in their provider’s SVR, is putting many in financial distress. This shouldn’t be the case. Retirees should have solutions available to live the lives they desire and deserve. Our new long-term fixed rate retirement interest-only mortgage is a step towards financial freedom for older homeowners.”