A quarter of people aged 55 or over and with a mortgage have said worrying about costs is affecting their mental health.

Research from Key Later Life Finance found that 11% of over-55s had already sought or were thinking about seeking professional help to cope with the impact of financial worries on their mental health. 

The firm said borrowers were dealing with unaffordable increases in their mortgage payments as their fixed rate deals ended and they tried to put money towards their pensions. 

The survey revealed that nearly all the respondents had suffered with their mental health due to the cost-of-living crisis, as cited by 87% of those polled. Just 13% said they were unaffected. 

Two-thirds of respondents said mortgage repayments would affect their standards of living in retirement, while 23% said the cost-of-living crisis would make it harder for them to clear their mortgage. A fifth were worried they would not be able to keep up with repayments. 

Mental health worries for all over-55s 

Key’s research found that the impact of the cost-of-living crisis was not limited to just those with a mortgage.

Some 65% of over-55s who owned their homes outright said rising costs affected their mental health, while 15% said the impact was severe. 

Some 7% of respondents who owned their home outright said they were seeking or considering professional medical support. 

Concerns about living standards 

Among all respondents, two-fifths said they were worried that the cost-of-living crisis would mean they would not have enough retirement income, and 36% were concerned about having to spend their savings. 

More than a quarter – 27% – said they felt like failures because they were unable to help their family. 

Some 23% were worried they would get into debt with credit cards and loans. 

Chris Bibby, managing director at Key, said: “It is concerning that so many over-55s with mortgages are seeing their mental health suffer, and even having to seek professional medical help and counselling to cope.

“The prospect of having to pay for major increases in their monthly mortgage payment while other bills are going up is a huge issue, which can make saving for retirement even harder. And it’s not just those with mortgages who are worried.

“There is a real need for strong solutions for older customers, and the later life lending market is evolving rapidly to meet demand. Over-55s should seek specialist advice on the growing number of product options available to them, which could provide a better outcome than those offered by high street lenders.”