The mortgage debt of older households and the effect of age: An analysis using the Wealth and Assets Survey 2008-10

Holding a mortgage, and particularly a heavy mortgage, into older age can dramatically affect people’s wellbeing; it reduces the amount of money households can realise from their homes and may contribute to problem debt, reducing further the limited resources many people have in their retirement. Using data from the 2008-10 Wealth and Assets Survey PFRC, in partnership with ILC-UK, have explored how age effects mortgage borrowing amongst people aged 50 and over. The research examines three key areas. Firstly, the effect of age in predicting mortgage borrowing in older households. Secondly, the research explores the relationship between age and heavy mortgage borrowing. Finally, the paper investigates the likelihood of an older mortgaged household having difficulties in meeting their monthly mortgage payments.