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Cheap mortgages could support retirement

Date: Wed, 17 May 2006

Shopping around for a cheap mortgage offer could help to ensure a financially stable retirement.

Research from retirement and housing specialist Economic Lifestyle estimated that the average 65-year-old pensioner retiring from work will need access to around £400,000 to see them through their retirement.

Once life expectancy figures are accounted for it is estimated that retired women will need over £435,000 and men around £365,000 to fund the rest of their lives.

Although benefit income and occupational pensions will help to fund this figure, consumers are being reminded to consider taking steps now to reduce their overall debt levels and boost their assets.

In particular, homebuyers are being advised to make sure they don't commit to a long term expensive mortgage, because they could find themselves still making repayments when they retire.

"With an increased retirement age an all too real prospect, it may make sense for borrowers to consider increasing the term of their mortgage - however, few first-time buyers would be happy to picture themselves still saddled with a mortgage when they reach retirement age," said Louise Cuming, moneysupermarket head of mortgages.


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