Around 320,000 homeowners aged 51-65 are planning to use money from their pensions to pay off their mortgages, according to new research from retirement income provider Just Group.
Just adds that 23 per cent of the homeowners aged 51-65, or nearly a million people, expect to be making mortgage repayments after the age of 65.
Just group communications director Stephen Lowe says: “The older they are, the more likely people are to look to other sources of funding to clear the mortgage – such as pensions or inheritances.
“However, there are still significant numbers – nearly a third of a million people – who are thinking of using either a lump sum or income from the pension to clear the mortgage.
“It will depend on people’s own circumstances whether doing so is financial sense or financial folly.”