The Interactive Investor cautions homeowners, including first-time home buyers in their mid-thirties who are considering long-term mortgages, to seriously consider the implications for their retirement plans.
They may have to contribute significantly more when they retire to cover their post-retirement mortgage payments, or be prepared to work longer. However, health issues and other life events often prevent people from working longer, even if that is their intention.
This could put people with mortgages later in life at risk of not being able to continue to meet their repayments into old age.
Respondents to the Great British Retirement Survey interactive pension survey were on average 60 years old, with an average of 11 years remaining on the mortgage.
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