People want to be mortgage-free by 50, survey shows

Those with mortgage debt would like to be free of this by the time they reach the age of 50, a new study has revealed.

Conducted by The Co-operative Bank Mortgages, the survey indicated that 62 per cent of people have this desire, with many making overpayments on the amount owed.

The top reason given for doing this is so as to reduce its term and, when asked what they would do once they were mortgage-free, 52 per cent said they would go on more holidays, while 31 per cent would save more cash for their retirement.

And such a wish may indeed come true, as recent statistics from the Woolwich of Barclays stated that mortgages are becoming more affordable, with average monthly payments now £497, a drop from £607 recorded in December 2008.

Head of mortgages at the The Co-operative Bank Mortgages James Hillon said: “The research clearly shows that many mortgage holders are looking to take advantage of the low interest rate environment by making overpayments.”

By Sarah Adie