Mortgages into retirement
Many more people are working beyond State retirement age and this number is increasing year on year however, few High Street banks and building societies are willing to offer mortgage finance beyond age 70 despite many being able to demonstrate the means to afford the repayments.
Whether you need longer to repay the remainder of your mortgage or want to release some cash to pay for improvements to your home or help your children/grandchildren to buy a home of their own or increase your income in retirement, we have access to a growing number of lenders willing to help.
We feel it is important that you get impartial advice on the full range of mortgage products available including traditional mortgages for the retired and not just "Equity Release Schemes" such as roll-up lifetime mortgages or home reversion plans.
We welcome the opportunity to discuss your borrowing requirements either over the phone or by arranging a face to face meeting, available without cost or further obligation.
As thee name implies, these are standard mortgages where you make regular monthly payments to the lender, available on either a capital Repayment or Interest Only basis. The amount that you can borrow is subject to affordabliity tests, determined by your income and the term of loan required. Set up costs may be lower than "Equity Release" products and any Early Repayment Charges are often limited to an initial interest rate period. One of our advisers will take the time to explain your options having first grasped your circumstances.
Put simply, Equity Release is a method for releasing some of the money stored up in your home, without the need to move. With an Equity Release scheme you get a lump sum, or an income, or both, to use as you wish. Equity Release can also be used to purchase a property.
To be eligible, you will have to be over a certain age (usually 55+), resident in the UK and a home owner (or otherwise looking for a mortgage to buy a home for your own occupation).
Equity Release can significantly improve your financial situation giving you a more comfortable retirement however, it is worth noting that most Equity Release schemes will reduce the value of your estate and may affect your entitlement to State benefits.
How much you can borrow depends on the value of your home and your age. The older you are, the higher the percentage of your property’s value you can borrow. Generally, you will not be advanced more than 50% of the value of the property. An increasing number of Equity Release products permit regular monthly and/or ad hoc capital overpayments.
Most loans are charged at a fixed interest rate thereby reducing the risk of any future market changes.
As members of the Equity Release Council (ERC) we only recommend Equity Release mortgage providers that adhere to their statement of principles.