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Perenna responds to Sir Steve Webb’s FOI request on post-retirement age mortgages

by | May 13, 2024

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Reacting to Sir Steve Webb’s FOI request on post-retirement age mortgages, Arjan Verbeek, CEO of Perenna commented:

We are already seeing pensioners pay rent well into retirement, and the proportion of households that own their own home during later life could fall to 63%, meaning 3.6 million would be renting. Ultimately though, paying off a mortgage in retirement is far better than paying rent, as mortgage payments build up equity each time.  

It’s important that monthly payments are fixed, however, to provide certainty and the solution to this is long-term fixed rate mortgages (LTFRMs). This is why long-term fixes need to become far more prevalent in the UK mortgage market, like models seen in Europe and the US. To unlock their full potential, the Bank of England must exempt these types of products from the LTI affordability limit, as ironically, the regulations working to protect the system are actually creating a risk of their own.”


Pensions Policy Institute: Renting in Retirement – The Fault Line Below the UK Pension System

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