Peter Wilkinson, our Head of Residential Conveyancing Services, has been looking into the problems facing clients with mortgage products that may not be paid off as they move into retirement, or indeed may be forced into early retirement because of the present economic climate. People have been advised that they could be helped to pay off debt if they downsize their property when they retire, which conveyancing solicitors could help them with.
Dr Ros Altmann, director general at Saga, said that those who are struggling financially when they give up work could release capital by doing this.
She said: "An increasing number of people in their 50s also have debt, which is obviously quite worrying because normally they would have been expected to pay things off while they are working. It's hard to see how they are going to be able to afford to repay debt while they are no longer working."
According to Ms Altmann, the most common form of this is mortgage debt, which is less worrying than other varieties, as there is an asset behind it.
In addition, those looking into conveyancing will be interested to hear that Aviva's fifth Real Retirement Report showed that 23 per cent of people think they will be 75-years-old or over before they are free from debt.
If you are thinking of selling your home and buying a smaller property, contact our Residential Conveyancing Team for initial free advice about the costs involved and the best way forward for you.