People 'should pay mortgage before 55'

Wed 10 Mar 2010 - Published in Mortgages

Homeowners should strive to pay off their mortgage before the age of 55, an expert has recommended.

Timothy Lambert, head of consulting at property investment consultancy Ducalian, pointed out that income tends to fall significantly when people enter retirement, making it sensible to hold as little debt as possible.

"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 said.

Mr Lambert's comments came after an article in the Daily Telegraph argued that people could benefit from paying off their mortgage into retirement, as this would allow them to free up money during the earlier part of their life.

The expert admitted people often have more pressing matters to deal with than a long-term long and claimed it is "understandable" that they want to deal with a mortgage after these have been dealt with, but stressed the need for planning retirement income and spending early.

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