Retirees forced to sell their homes amid cost-of-living crisis | Personal Finance | finance

More than a quarter million (334,000) interest rate mortgage holders will see their term deals expire between 2022 and 2027. Retirees and anyone over 50 could struggle to find new business and be forced to sell, a trade association has warned.

Homeowners are bracing for higher mortgage rates after inflation hit 9 percent this week – the highest level in 40 years.

People with a fixed-rate mortgage won’t notice a difference until the end of their fixed-term mortgage, while those with interest-only mortgages might feel the crunch sooner.

Around 334,000 fixed-term mortgage customers will be phased out between 2022 and 2027, according to UK Finance.

The majority of these borrowers are already over 50 and will struggle to find new credit, trade organization The Telegraph has warned.

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Although he has since managed to stay in the home without selling it, David’s case shows how elderly people can struggle to keep their belongings.

And he’s not the only one – ADavid Higginson also spoke to the newspaper about his struggles.

He entered into an interest-only deal that expired in November 2021 when Lloyds demanded he repay £125,000 or sell it.

A spokesman for Lloyds Banking Group said: “We are in contact with our interest rate customers throughout the life of their mortgage to remind them of the importance of an appropriate repayment tool and to let us know if they have any concerns.”

They added: “We have a team of colleagues dedicated to finding solutions for anyone who needs additional help.”

Back in December, activists warned that things would get a lot worse for “mortgage prisoners” who are unable to postpone deals because their circumstances have changed.

Mortgage prisoners are homeowners who are stuck with expensive mortgage deals and are unable to switch to cheaper ones, largely because they no longer meet affordability tests.

A spokesman said: “A rate hike will ultimately lead to more redemptions and result in more families experiencing poverty.

“Mortgage prisoners will be hit the hardest, and they are the ones who have been treated so unfairly for so long.”

Last week, Martin Lewis urged homeowners to review their mortgage rates after the Bank of England decided to hike interest rates by 0.25 percent. (

‘You Can Save Thousands’ Martin Lewis Warns Homeowners to Check Mortgage Rates NOW)

This could save people thousands of pounds over the course of a year.

Mr Lewis said: “With further rate hikes forecast and many lenders’ default variable rates going up to five per cent, it’s a must to see if you can save by changing deals.”

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