- In an ageing population, we recognise the importance of providing specialised advice for those looking for a mortgage later in life. This is known as Later Life Lending.
- Later Life Lending can help a variety of client needs such as: repaying debts and mortgage, supplementing retirement income, home improvements or providing financial assistance to your family.
- We deliver solutions tailored to your personal situation and advise on Equity Release schemes such as Lifetime and Interest only mortgages
With a Lifetime mortgage, the amount you can borrow depends on your age and the value of your property and you won’t have to make any repayments before the end of the plan whilst still owning your home. The interest payable on your mortgage is usually rolled up and added to the loan. You can access your funds through either a lump sum or use the drawdown functionality on the mortgage. The loan is paid back when you die or move into permanent long-term care.
You should be aware that taking out a Lifetime mortgage could reduce your eligibility for means-tested benefits and affect your tax position. Taking out a Lifetime mortgage may also reduce the options that you have for moving or selling your home, you also need to be aware of any impact it may have on the inheritance you will be able to leave.
To understand the features and risks of a Lifetime mortgage, speak to one of our qualified specialists about providing you with a personalised illustration.
A Lifetime Mortgage will reduce the value of your estate, will not be suitable for everyone and may affect your entitlement to state benefits.
Interest Only Mortgages
Another option is an Interest Only Mortgage. In many cases these are now available up to the age of 95, subject to an affordability assessment. If the loan term extends beyond your retirement date, you will need sufficient income to continue to afford the repayments on your mortgage. The interest on your mortgage is payable monthly and you must repay the loan capital at the end of the term. Selling you property can be an acceptable repayment method at the end of the term.