A mortgage is one of the biggest financial commitments a person can enter into, and as such many will wish to pay this off while they still have a regular source of income. However, a survey undertaken by Hargreaves Lansdown has shown this goal is becoming further off for Britons. With one in six people expecting to be over 65 by the time they repay their mortgage, the average age individuals are expecting to repay the sum is 59.
Of course, paying the mortgage into later life is likely to become more common nowadays.
With property prices soaring, many will get their first foot on the ladder at a later age, and therefore, with a standard 25 year term will have the financial worry later on than previous generations have.
Indeed, as Ms Coles highlights, it may only take an odd “life hiccup” for payments to last well into a person’s 60s.
But paying a mortgage into retirement does not have to be a disaster for those faced with this prospect.
“We need to keep on top of when the mortgage is due to be repaid, so we can build our broader financial plans around it.”
Some Britons may choose to overpay as a solution to becoming mortgage free at a quicker rate.
However, it is worth noting overpayments can usually only be made up to a value of 10 percent each year.
Similarly, remortgaging to a lower interest rate could mean more monthly payments go towards repaying the total.
It may be the case, though, that Britons need to keep working until they pay off their mortgage.
This means retirement plans may need to be pushed back, but doing this sooner rather than later can avoid last minute disappointment.
Finally, releasing equity from the home could be a suitable option, but it is often considered not for the faint-hearted, with advice usually necessary.
This is because the loan will roll up and must be repaid after a person has passed away, and over a longer period of time, the loan can significantly increase.