The options
The main routes
A standard mortgage into retirement. Many lenders will now lend to age 75 or beyond, provided you can evidence that your retirement income will cover the payments.
Retirement interest only. You pay the interest each month and the capital is repaid when you die or move into long-term care. You still need to prove you can afford the interest payments.
Lifetime mortgages and equity release. No monthly payments are required, with interest rolling up over time. We do not advise on these ourselves. Lifetime Mortgages and Equity Release are referred to a third party, and neither Mortgage Matters Solutions nor PRIMIS are responsible for the service received.
Deciding
Things worth thinking about first
This is one of the areas where the right answer depends heavily on your wider circumstances, and where family conversations matter.
- What your retirement income will actually be, from all sources
- Whether you want to leave a specific inheritance
- How any borrowing might affect means tested benefits
- Whether downsizing would achieve the same thing more simply
- What happens if one of a couple dies or moves into care
Your home may be repossessed if you do not keep up repayments on your mortgage.
Lifetime Mortgages and Equity Release are referred to a third party. Neither Mortgage Matters Solutions nor PRIMIS are responsible for the service received.
A Lifetime Mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits and tax status. The impact of not servicing monthly interest payments on a Lifetime Mortgage is that the outstanding debt can grow rapidly, thus reducing the value of your estate. For example, if the interest rate was 7% a year, a £50,000 loan would double to £100,000 after 10 years assuming no repayments are made. This is an example for illustrative purposes only and personalised advice and recommendations should be sought from a qualified professional. You are strongly advised to register a lasting power of attorney. This will allow your affairs to be managed by somebody else if your mental abilities significantly decline.