Retirees face a mortgage bomb – ‘Borrowers on the brink’ | Personal finance | Finance
Concern is growing for around 320,000 pensioner households in England who continue to pay for their homes. A new poll shows nearly eight in 10 retirees say they will blame the government if their mortgage bills go up.
The English Housing Survey estimated that in 2020-21 there were around 5.1 million owner-occupied households whose head of household was over 65 – and 320,000 pensioner households still had a mortgage .
In the latest sign that Prime Minister Liz Truss will face problems at the polls if mortgage costs rise, Savanta ComRes pollsters found that 78% of people aged 65 and over said “the government budget will be to blame if mortgage bills increase in the coming months.
Bank of England chief economist Huw Pill stoked expectations of a November interest rate hike when he said last week he expected a response “significant” is necessary to fight against inflation.
The Liberal Democrats are urging Liz Truss to come up with ‘an urgent plan to help mortgage borrowers on the brink’.
Sarah Olney, the party’s Treasury spokeswoman, said: ‘Their botched budget will see thousands of pensioners hit with higher mortgage rates. The government has seen mortgage rates soar without any additional support for homeowners who are already bearing the brunt of the cost of living crisis.
She called on the Tories to “apologize to the thousands of retirees across the country who must pay the price for the damage they have caused”.
Caroline Abrahams, from the charity Age UK, said: ‘High interest rates are pushing many older homeowners into financial difficulty as the cost of mortgages rises, which can be particularly problematic for people who are over retirement age, as they may depend on low income. covered by the state pension. The cost of living crisis is hitting people of all ages and financial circumstances hard, and many are deeply anxious about how they will get through this winter.
“The government must ensure that everyone gets the support they need so that all older people can keep the roof over their heads, put food on the table and heat their homes.”