Mortgages 'should not run into retirement'

Posted: 29 Apr 2010 09:17:41 GMT

Homeowners should make sure they pay off their mortgage by the time they retire, one expert has stated.

Andy Pratt, the chief operating officer at Alexander Hall, says people who have not paid off their home loan by the time they reach retirement should make sure they come to an agreement with their lender.

"Essentially they have got to keep the lender involved and eventually agree a position with the lender so that they can move forward on an agreed basis with them about paying back the balance," he advises.

Mr Pratt suggests that the Citizens' Advice Bureau can also be helpful in terms of offering support and guidance.

His comments come in response to figures from Key Retirement Solutions, which show that 27 per cent of pensioners still have a mortgage and are owing an average amount of £45,602.

Furthermore, 20 per cent of those of retirement age have an outstanding credit card debt amounting to nearly £9,000.

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