Homeowners should ensure they have agreements in place with their mortgage lenders to ensure they are not still making payments when they have retired, according to independent advisor Alexander Hall.
The comments follow the publication of a report by Key Retirement Solutions, which revealed that 27 per cent of pensioners still have a mortgage, with the average amount owed standing at more than £45,000.
According to the study, just fewer than 21 per cent of pensioners also have credit card debt and a similar number have outstanding loans running into thousands of pounds.
Andy Pratt, chief operating officer at Alexander Hall, said: "[Mortgage debt] shouldn’t run into retirement.
"It is not necessarily just down to the particular advice; it is what has happened to the client in the meantime and whether they have made appropriate contact with the lender or another body to get advice on the best way to restructure that debt."
The figures could inspire a number of people to release some of the value of their home with a lifetime mortgage, which can provide homeowners with a lump cash sum or a regular income.
Posted by Tom Papworth
