Some 30% of those over 55s say that their ability to repay their mortgage will be hindered due to the cost-of-living crisis, according to the latest data from Key.

Key suggests this equates to around 879,000 mortgage plans “being derailed”.

Of those 3.3m over-55s who have yet to repay their mortgage, 16% say they plan to repay their mortgage ahead of retiring but the cost-of-living crisis will make it harder while 13% say it will take them longer.

Two in five (40%) over-55s have already repaid their mortgage.

Key says its research took place in both the second and fourth quarter of last year to track the ongoing impact of the current high inflationary environment.

In Q2 2022, 44% of over-55s with mortgages said that the current environment had no impact on their plans to repay their mortgage.

However, in just six months, this had fallen to 28% as the impact of rising inflation, tightening affordability criteria limiting the ability to secure new/better deals and rising household bills saw more people doubt their ability to stick to their repayment ambitions.

The proportion of people who intend to repay their mortgage ahead of retirement increased to 19% but it is entirely possible that some have chosen to delay finishing work to achieve this.

The research also showed a five percentage point increase in the number who say that they will repay their mortgage prior to retirement but will find this harder.

Key chief executive Will Hale says: “The cost-of-living crisis is no longer a short-term challenge but one that has far longer implications for many – especially those who are older and looking to pay off their mortgage.”

“It is extremely worrying that almost 900,000 over-55s are going to find it tougher to repay their borrowing as they work hard to deal with rising household bills alongside the need to save enough to be able to enjoy a secure and fulfilling retirement.”

“With a larger proportion of their income being used for utilities and groceries – expenses which have been particularly hard hit by inflation – many over-55s are considering how they can cut back in other areas or even return to work in order to better manage their finances.”

“However, some are already living extremely prudent lives so are likely to feel under increasing pressure to make ends meet.”