Tom is 57 years old and married with three children who have left home. He retired from the police force six years ago so has an occupational pension, although still works part time. He has an interest-only mortgage of £86,000 with 10 years left to pay off.
Shares and funds
Pay mortgage off early
"I have always been interested in shares, funds and other investments, but have never put serious amounts of money into them," says Tom. "However, three years ago the interest rate on my mortgage dropped to 1.99 per cent and I was reading about shares paying 4 to 5 per cent dividends, so I wondered if I could raise the £86,000 to pay off the mortgage early and now this is my aim.