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One in seven retirees suffer mortgage crisis

One in seven retirees is suffering from a mortgage crisis as rising interest rates put pressure on fixed retirement incomes.

Fourteen per cent of over 65s are weighed down by mortgages that have run into their retirement, according to a report by Key Retirement Solutions.

For those entering retirement with an outstanding mortgage, monthly repayments on an average mortgage of £32,000 are likely to be approximately £344, an annual expense of £4,128 when the average income for pensioners is currently £14,600 per year.

KRS says many retirees could benefit from considering equity release to not only erase their existing mortgage debt, but to also have the opportunity to take a cash lump sum.

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