Of course, as a homeowner, you dream of the day that you pay your mortgage off and really and truly own your own home. But what will you do with all that extra cash once you’ve finished paying your home loan off?
Research from Saga Investment Services has found that the over-50s are choosing to spend their money on home improvements, gifts for their children and holidays, with less than one in four actually using the extra cash to top up retirement savings.
Of those people over the age of 50 who now own their own home outright, 45 per cent said they spent their average monthly income increase of £322 on home improvements, 40 per cent spent it on holidays, 27 per cent purchased a new car and half put some of the cash into a savings account.
Managing director of the company Nici Audhlam-Gardiner said: “Repaying a mortgage is one of life’s biggest financial achievements and it’s understandable that people want to enjoy the income boost that they’re finally getting after decades of debt repayments. But this often comes when there’s limited time to build up as big a nest egg as possible for retirement.”
But, of course, before you get to the point of having paid off your mortgage, you actually have to take out a homeowner loan in the first place. It can be very stressful trying to get a mortgage but with the right kind of mortgage adviser in York – such as our team members here at Let’s Talk Mortgages – it doesn’t have to be. Get in touch with us today to find out more.