Mortgage 'should be paid off by 50s'

It is important for people to take steps to pay off their mortgage before they reach the age of 55, one sector commentator has claimed.

Timothy Lambert, head of consulting at Ducalian, said this is because the average income starts to drop off significantly once people begin to approach the age of retirement.

"I can see that paying off a mortgage over a longer period frees up capital to invest in other areas, but it's important to try and have a mortgage paid off before 55 if at all possible," he added.

Taking such action could help to give people some extra security when they do leave the workplace and begin their retirement years.

However, Jane Marr, company director at the Little House Company, recently warned there may soon be a situation where people are unable to buy their first home until they are in their 30s, which could make paying off a mortgage by this time difficult.

With this in mind, people may wish to instead consider flats to rent in the London borough of Hammersmith and Fulham in an area such as Fulham, or elsewhere in the capital, which could be far cheaper than buying in the same place.

Indeed, with the Land Registry recently revealing the price of London property has risen significantly in the last year, renting may be an increasingly realistic option for Britons.

Written by Charles Mackay

Published 10th March, 2010

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