Homeowners Foresee Long-term Mortgage Commitment
Wednesday, November 01, 2006
More than a third of homeowners predict they will be nearing
retirement before they own their own home, new research
suggests.
Responding to a One Account survey, 36 per cent of homeowners
predicted they would be at least 60-years-olds before they paid
off their mortgage.
A further 20 per cent didn't expect to fully pay off their
mortgage until some time in their 50s, with many also
complaining that mortgage commitments were impeding on other
areas of their life.
More than two in five claimed not to be able to save because of
their mortgage, while nearly one in five 25 to 29-year-olds said
it was forcing them to delay starting a family.
However, Debbie Milsom from One Account questioned why
homeowners were finding their mortgage such a burden.
Paying off a mortgage should not mean that people have to put
their life plans on hold, Ms Milsom said.
She added: It is worrying that homeowners perceive that it will
take them until they are in their 60s before they pay it off
when they should be spending this time preparing financially
for their futures.
Ms Milsom reminded homeowners that there are often flexible
solutions for managing payments.
Homeowners with overly expensive payments may also find
remortgaging can help to reduce their monthly commitment.
As less people are putting money into pensions, more could
begin looking at remortgaging to ensure economic stability
during their later years.
Figures released by Moneyfacts have shown that personal pension
returns have fallen by as much as a half in the last decade.
The news means that even if Britons are putting the same amount
of money into their pension pot every year, their average
with-profits pension fund could be half what it would have been
in 1996.
These latest figures should serve as a powerful reminder that
securing a comfortable retirement will only be possible for
those individuals who actively monitor and manage their own
pension provision, warned Richard Eagling, editor of
Investment, Life & Pensions at Moneyfacts.
The research from Moneyfacts could cause more people to
consider other options of financing their retirement, with
taking out a remortgaging and downsizing their homes one method
to increase the amount of money available in later life.
About The Author: Providing http://www.tml-mortgages.co.uk &
http://www.tml-mortgages.co.uk/remortgages/ to homeowners
having current or previous credit issues, cannot prove their
income or need to consolidate debt from TML Mortgages
posted by Dennis Cheesman @ 11:18 AM,
