shabab picIt is likely many of you out there with mortgages must have at some point thought about how you will pay off your mortgage, or how you could pay off your mortgage as quickly as possible.

It is worrying that one in ten people are thinking of using their retirement fund to pay off the mortgage. This is worrying because, surely a retirement pot should be for retirement purposes, other than paying off debt that should ideally cease before ceasing work.

For those of you that are on a repayment mortgage, and the term is going into retirement, I would suggest you visit a mortgage adviser, and work out if you can repay your mortgage before retirement age, or change retirement plans so that the mortgage ceases before you finish your working life.

The positive aspect of a repayment mortgage is that at least you are on target to cease your mortgage at some stage in the future. If your mortgage is to run into retirement or you want to retire early, then perhaps making affordable over-payments may be an idea to reduce your mortgage term.

It is more worrying if you have a retirement only mortgage, and have no repayment vehicle in place. There are many individuals who will most certainly have a financial nightmare with an interest only mortgage and no repayment vehicle.

I would strongly suggest if you have an interest only mortgage to consider moving the mortgage to a repayment mortgage, or if you truly dislike the idea of a repayment mortgage, then you start a repayment vehicle to pay the mortgage off. This could be in the form of a NISA, a bond or any other type of savings plan to pay the debt, when the mortgage term ceases.

The issue with an interest only mortgage is that now it is becoming harder to be eligible for an interest only mortgage. This is because the regulators have clamped down and insisted lenders restrict only mortgages to only those individuals with credible repayment plans in place. This means if you have no repayment vehicle, then it maybe likely you cannot move from your current mortgage deal to another interest only deal, but may be forced to undertake an interest only mortgage.

You could also undertake a holistic view of your overall financial situation and see if there are any other ways to reduce your mortgage debt. A recent survey undertaken highlighted 6 percent of individuals are waiting for an inheritance to pay off the mortgage debt.

Whatever your personal situation is, I would suggest undertaking a review with your advisers to ensure that you are on track and there are no nasty surprises to follow in the future.