If your interest⁠-⁠only mortgage term has ended or is about to end, and you still owe money, you will have some big decisions to make regarding how you repay the outstanding amount. TSB have chosen to work with Age Partnership Limited to assist customers like you to make an informed decision about your interest⁠-⁠only mortgage. Our interest⁠-⁠only maturity service has been specifically designed to support you if you have not got the funds available to fully repay your mortgage. We will guide you through your available options and do what we can to assist you in finding a solution suited to your individual circumstance.

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.

Our specialist teams will talk you through your options and give you the information needed to enable you to make an informed decision on what to do next.

It’s important when coming to the end of an interest⁠-⁠only mortgage plan to consider all options. So we will take you through the below questions to assess all the avenues in which we can support your sustainable financial plan, things such as;

Assets or savings

Do you have any savings that can help to pay off some or all of your mortgage?

Family or friends

Do you have anyone close to you that could provide financial assistance that you would be willing to ask for help?

Pensions

Use of pensions — Have you considered releasing money from your pension pot? Could these funds help you to pay off your interest⁠-⁠only mortgage? Our specialists and advisors can provide you with a quotation or a completely personalised recommendation on whether releasing money from your pension pot would be right for you.

Downsizing

You may look at the above options and think that none of them would be suited to your circumstance. If we find none of these options are suitable, another route may be to consider downsizing. Selling your home and moving to a smaller property would enable you to use the proceeds from the sale to pay off / put towards your outstanding balance. Even if you cannot eliminate your need to borrow you may be able to reduce your borrowing requirement.

Residential Mortgages

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. Should you wish to discuss this option further, the TSB team can walk you through your options.

Retirement Interest⁠-⁠Only Mortgages

This is a type of mortgage which could offer 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.

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 move. With the most popular form of equity release, a lifetime mortgage, there is the option to make monthly repayments or roll the interest into the mortgage to be repaid when the house is permanently vacated. Lending is not based on affordability but rather on your age, health and property value. With any equity release plan, it is a requirement to repay your standard mortgage.

About Age Partnership Limited

We’re proud to have helped over one million people explore their options when borrowing in retirement. Should you choose to proceed we can provide advice from leading lenders on a wide range of residential mortgages, retirement mortgages and equity release.

To help you explore the options available to you we gather all relevant information and when appropriate, recommend a specific solution without initial cost or obligation.

Should you choose to discuss your options with us, you are under no obligation to take our advice and will not be charged for speaking with us. Only if you decide to proceed exploring your pension income options may additional charges occur.

Benefits of our advice process include:

• ✔No equity release or mortgage advice fee for TSB customers;
• ✔Independent advice on a wide range of solutions from across the whole of market;
• ✔Exclusive equity release plans available via Age Partnership+;
• ✔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 ‘Gold’ for customer service by Investor in Customers — our seventh consecutive award.

Things you should consider:

Releasing equity to repay a mortgage or re-mortgaging won’t be appropriate for everyone but with the right support you can establish which 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.

Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property and will reduce the value of your estate and impact funding long⁠-⁠term care. To understand the features and risks ask for a personalised illustration.

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.

You only continue to own your own home with a lifetime mortgage that is secured against your property.

Your Advisor will tell you everything you need to know about equity release including the effect on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future. Remember, future property prices could be higher or lower than they are today.

We do not charge an equity release or mortgage advice fee to TSB 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 equity release or mortgage 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.

If you make a decision about our pension income service without taking financial advice from us, we will receive a commission from your chosen provider.

If you receive a recommendation from our Financial Advisors on your pension income, we will charge you a fee for that service.

Think carefully before securing debts against your property. Your property may be repossessed if you do not keep up repayments on your mortgage.