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Research: Tens of thousands of elderly people in trouble with interest-only mortgage

2019-12-16T07:19:20.785Z

A few tens of thousands of elderly people run into problems with their interest-only mortgage, concludes researcher Mauro Mastrogiacomo in a study that newspaper Trouw writes about on Monday.



A few tens of thousands of elderly people run into problems with their interest-only mortgage, concludes researcher Mauro Mastrogiacomo in a study that newspaper Trouw writes about on Monday.

They are in trouble because they do not have enough savings to pay off the debt and also insufficient surplus value on their home to live smaller. In addition, renting in the free sector is too expensive for this group and they have too much money to get a social rental home.

"So they are stuck", Mastrogiacomo tells Trouw . The researcher works at De Nederlandsche Bank (DNB) and the VU University Amsterdam. The researcher's findings will be published on Monday by the Netspar pension think tank.

According to Mastrogiacomo, this is about 5 to 10 percent of the number of people over 65 with an interest-only mortgage. That amounts to 23,000 to 46,000 people, according to the researcher. This is above average often for single elderly people. "In particular, the group that did not work much. They are then mainly dependent on their state pension," the researcher said

With a repayment-free mortgage, homeowners only pay the interest on their debt, the repayment of the mortgage is voluntary. The problems surrounding this type of mortgage are now starting to play, because they became very popular in the 1990s and these mortgages often have a term of around thirty years. Many of those mortgage installments are starting to expire, bringing to light the residual debts and related payment problems.

Source: nunl

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