If your mortgage term is coming to an end and you still owe money on your mortgage, you will have some big decisions to make regarding how you repay the outstanding amount.
If you cannot agree new terms with your mortgage provider and do not want to sell your home, then you will need to consider the alternatives available. This could mean taking out another mortgage.
How we could help you
Our interest-only maturity advice service has been specifically designed to support you if you have not got the money available to repay your mortgage. Once you have established the options available to you with your existing mortgage provider, you may wish to consider alternative options and this is where our service can help.
Equity release refers to a range of products available to those aged 55 or older that allow you to access your housing wealth without having to sell or move. With the most popular form of equity release, a lifetime mortgage, there is the option to make monthly payments or roll the interest into the mortgage to be repaid when the house is eventually sold. You can also choose a variable interest rate or the certainty of a rate which is fixed for the life of your mortgage. Lending is not based on affordability but rather on your age, health and property value.
This is a type of lifetime mortgage, which offers more flexibility when borrowing in retirement. Lending is based on affordability as you pay the interest on the mortgage each month, however the capital will be repaid from the sale of your home when you die or move permanently into long-term care. There is additional flexibility as when the youngest borrower reaches age 80, or on the fifth anniversary after taking out the mortgage (if later), you can elect not to pay the mortgage interest and instead add it to the loan each month.
Although your existing mortgage may no longer be suitable, you may be able to re-mortgage to an alternative product or provider. Any new mortgage will require monthly repayments and the capital balance would still need to be repaid in the future. It is unlikely that this will be a permanent solution as most mortgages will have to be repaid by a specified age. However it could provide breathing space to consider your long-term plans.
Benefits of choosing Age Partnership
At Age Partnership, we believe that people who are at, or approaching retirement deserve to get the best out of life. Our award-winning service can offer expert, honest and impartial advice and our advisors will work with you to determine what alternative solutions you can consider; helping you to make an informed decision about your interest-only mortgage.
As one of the UK’s leading retirement specialists we’re proud to have helped over one million people explore their options when borrowing in retirement. We offer a wide range of solutions, providing advice from across the whole of the market on residential mortgages, retirement mortgages and equity release.
Number One Customer Experience in Financial Services: We pride ourselves in the excellent service we provide our customers. With over 12 years' experience in the financial services industry, you can be rest assured that the service you receive will be nothing less than first class.
Don’t take our word for it…
Real Customer Story from Mr Mawer
“I chose to take out equity release because I had an interest-only mortgage that was due to expire and I didn’t have the funds available to repay it. Age Partnership helped me to pay off the mortgage, which was quite fantastic.”
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Things to consider
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
We provide initial advice for free and without obligation. Only you choose to proceed and your case completes would a fee be payable.
Equity release may involve a lifetime or home reversion plan. To understand the features and risks, ask for a personalised illustration.