Inheritance 'makes some purchases possible'

Paying off the mortgage is an option only possible in the event of a big inheritance, according to new research.

Engage Mutual Insurance has reported that 23 per cent of people believe that fully paying off a mortgage is only possible with a lump sum.

Some 21 per cent of people would use a large inheritance to buy either a holiday home or a second home, while 19 per cent would take the lump sum and travel around the world.

A further 17 per cent would use the opportunity to buy a new car, while 12 per cent would retire if the legacy was hefty enough.

But Karl Elliot, speaking on behalf of Engage Mutual, said that it is "worrying" how many are relying on inheritance.

He said: "Whilst inheritance can be a great financial help it is not something we can control. We encourage people to take control of their families' futures and save little and often."

Earlier this month, Mr Elliot urged people with financial worries to seek help.

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