Paying off mortgage 'leaves options for equity release'

Paying off a mortgage before the age of 55 leaves plenty of capital available to take advantage of in retirement, it has been claimed.

It is important to pay off a mortgage before reaching retirement, according to head of consulting at Ducalian Timothy Lambert, when many people have other investment interests or consider accessing funds through equity release.

He added that falling earnings during retirement make it even more preferable that large debts are paid off while Brits are still working.

"It is important to plan for retirement early and invest spare capital in a wide range of areas in order to give yourself the best chance of paying debt," Mr Lambert added.

His comments follow the publication of a new report by Aviva, which indicated that the 75 and over age group own the most valuable homes in the country, with equity of £258,148 on average.

Ashall Glover Financial Services are equity release specialists