Huge rise in pensioners starting new mortgages

tHE number of borrowers in their 70s taking out mortgages has jumped by 75 pc to 16,000 in the past five years.

they now account for nearly a fifth of all lending to borrowers aged 55 and over, up from 10 pc five years ago.

Experts say many people are forced to take out a new home loan because their interest-only deal expires and they have no other way to clear the debt.

Others are tempted by low interest rates and are more willing to carry debt into retirement. A study by trade body the Council of Mortgage Lenders (CML) found 40 pc of borrowers who took out a mortgage last year will still be paying it off after the age of 65 — almost double the number of borrowers in 2012.

Older homeowners borrowed £112,000 last year — 11 pc up on 2012.

the CML estimates 43 pc of borrowers aged 55 or over have at least part of their mortgage on interest-only.