New research has suggested that the length of time that people are mortgage-free before retiring is shrinking meaning that people could have to retire later or have less cash ‘in the bank’.
As the gap between becoming mortgage-free and retirement closing in, it is feared those who took out a mortgage in recent years may struggle to save enough money for a comfortable retirement.
“For many people the period when they are still in employment but mortgage-free represents a golden opportunity to get some cash in the bank in preparation for retirement,” commented Reza Attar-Zadeh, director of savings and investments at Santander.
“This window has more than halved since the 1960s and the opportunity to save is getting smaller and smaller.”
So worthwhile considering when thinking about a longer term remortgage as you may not consider this impact and a good reason to look at ways to reduce your term.
Meanwhile, the Council of Mortgage Lenders (CML) recently welcomed the Treasury Committee’s view that the authorities should take enough time in introducing reforms to ensure that we end up with rules that are “effective but proportionate”.
The CML supports the Committee’s view that “it is more desirable that the government gets these reforms right than sticks to an arbitrary timetable”.
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