Your living situation obviously makes a big difference to your finances, not just now but in the future, so it’s important to consider how you might pay for your home over the coming years and after you retire. Having a mortgage is usually cheaper than renting, with the average UK mortgage costing about £670 a month versus the average rental cost of £830 a month. However, getting a mortgage when you’re over 50 isn’t always easy. You can find out more about the options that might be available to you in our article Mortgages if you’re over 50: what you need to know.
Cheaper still is living mortgage-free, so if you are in a position to buy and potentially pay off your mortgage before you retire, perhaps by overpaying your mortgage each month, then buying could reduce your living costs later on. Learn more about the effects overpaying can have on your mortgage in our article Should I consider overpaying my mortgage?
If you aren’t able to pay off your mortgage before you stop work, it’s worth thinking about how you will cover your monthly repayments once you retire. Do you have a pension pot that will cover these costs or do you think you will need to keep working? If you have a workplace pension, it is worth paying into it to try and boost the amount of money you will have at retirement?