Homeowners should clear debts before 55

Mortgage holders should plan their retirement early and aim to pay off their mortgage before they reach retirement, according to an expert.

Timothy Lambert, of property investment firm Ducalian, says homeowners should try to be mortgage-free by 55 so that they're in a comfortable financial position in retirement.

He says: "Many people see a 25 or 30-year mortgage as something to deal with in the future and it is often not treated as a number one priority. However, it is best to try and remove debt as fast as possible."

He says paying off the mortgage early is preferable in order to pay less interest overall.

"With income typically dropping significantly into retirement, the last thing people want is a large level of debt still awaiting [to be] paid," he says.

And what's more, over 55s who are debt free in retirement will have more equity in their homes.

This can be used to supplement their retirement income by either trading down to a cheaper property or taking funds out of the house with an equity release plan.

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