If your interest⁠-⁠only mortgage term has ended, or is about to end, and you still owe money on your mortgage, you will have some big decisions to make regarding how you repay the outstanding amount.

Age Partnership Limited can offer expert 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.

How can you repay your interest⁠-⁠only mortgage?

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

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.

Retirement Mortgages

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.

Residential Mortgages

Although your existing mortgage may no longer be suitable, you may be able to remortgage 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.

About Age Partnership Limited

At Age Partnership Limited, we believe that people who are at, or approaching retirement deserve to get the best out of life.

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. Offering a wide range of solutions we provide advice from leading lenders on a wide range of residential mortgages, retirement mortgages and equity release.

With a choice of either telephone or face⁠-⁠to⁠-⁠face advice, you can choose to speak to us either over the phone or in the comfort of your home. To help you explore the options available to you we complete a full assessment and, when appropriate, recommend a specific solution without initial cost or obligation.

Benefits of our service include:

• ✔ No advice fee for Yorkshire Building Society customers;
• ✔ Independent advice on a wide range of solutions from across the whole of the market;
• ✔ Exclusive equity release plans available via Age Partnership+;
• ✔ Equity release advice is available either over⁠-⁠the⁠-⁠phone or in the comfort of your own home;
• ✔ Over a decade of providing specialist advice, helping our clients meet their financial needs in retirement; and
• ✔ A multi⁠-⁠award⁠-⁠winning service that has also been independently rated as 'Exceptional' for customer service by Investor in Customers for four years running.

Things you should consider

Releasing equity to repay a mortgage or re-mortgaging won’t be appropriate for everyone but with the right advice and support you can establish what options are available to you. It’s a significant decision that should not be taken lightly, and we have listed below some of the key considerations when assessing your suitability.

• Consider the alternatives such as downsizing. Even if you cannot eliminate your need to borrow you may be able to reduce your borrowing requirement.
• Understand the impact releasing equity may have on your tax position and eligibility for means⁠-⁠tested benefits.
• Releasing equity may reduce the value of your estate and could reduce the amount available as an inheritance. Future property prices could be higher or lower than they are today.
• We do not charge an advice fee to Yorkshire Building Society customers. Should you choose to go ahead and your case completes, we will receive a commission from the lender.
• Whilst there is no cost to you for our advice, there may be other charges, for example for property valuations, surveys, or legal fees. We will work with you to understand your priorities regarding any other fees and discuss the best overall offer for you.