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 move. With the most popular form of equity release, a lifetime mortgage, you can roll the interest into the mortgage to be repaid when the house is eventually sold. There are plans available that allow you to make voluntary payments, subject to certain limits however early repayment charges may apply above a set value. Lending is not based on affordability but rather on your age, health and property value.
Equity release will involve a home reversion plan or a lifetime mortgage, which is secured against your property and will reduce the value of your estate and impact funding long-term care. You can read more about the different types of equity release plans here and if you want more detail we can provide you with a personalised illustration to explain exactly what equity release could mean for you and will outline the features and risks.
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest would be repaid upon death, or moving into long-term care.
Retirement mortgage refers to a group of later life mortgages aimed at helping customers who are over 50 years old use their property to raise money for any purpose.
Age Partnership’s mortgage service have access to a large panel of high street and specialist lenders to provide advice across later life mortgage types;
- ●Retirement Interest Only (RIO) – designed to help borrowers raise money against their property whilst keeping payments low through only repaying interest. There is no exact end of term as the capital borrowed is repaid on sale of property, moving into care or on death
- ●Later Life Repayment Mortgages – standard repayment mortgages but with terms of up to 40 years and maximum ages of 95 years old, allowing you to raise the money affordably whilst cutting down the size of your loan over time, meaning that more of your property can be passed onto your loved ones
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 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 two million people explore their options when borrowing in retirement. Should you choose to proceed we can provide advice across 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 19 years’ experience in the financial services industry, you can rest assured that the service you receive will be nothing less than first class.
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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 and any debt secured on it.
Age restrictions may apply, depending upon the lender chosen.
Initial advice is free and without obligation. Only if your case completes would our advice fee of £1,895 be payable. Other lender and solicitor fees may apply.