Getting the most out of Your Retirement
As you get older, there comes a time where paying off your mortgage is so second nature, you don’t even remember that the payment is there. However, if you’re over the age of 55, you could be entitled to release a cash lump sum from your property that could really liven up your bank account without all the unwanted hassle of moving home. Whether you’re looking to pay off long-standing debts, help a family member, renovate your home or start ticking luxurious holidays off your bucket list, releasing equity from your home could be the perfect solution to you.
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This is a Lifetime Mortgage. These are only applicable to those 55 and over, and it could affect eligibility to state means-tested benefits and the inheritance you may leave. To understand the features and risks, ask for a personalised illustration.
Later Life Mortgages
These are basically a mortgage that allow people to borrow past their normal retirement age of 65-70.
This will apply more to those that have taken out a mortgage close to their retirement age and may have a pension in place that will be able to cover the mortgage payments once into retirement.
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Retirement Interest-only
These mortgages are very similar to later-life mortgages however they do not have a fixed repayment date and as the title suggests you only make an interest payment each month and do not repay any of the capital.
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This might suit somebody who has had an interest-only mortgage and has perhaps cashed in their endowment without paying back any capital on the mortgage or if there was a shortfall.
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Lifetime Mortgages
These types of Mortgages have changed hugely over the last few years and there are several different options available to you, whether you require an upfront lump sum or perhaps a regular monthly sum paid to you for a period of time depending on the circumstances.
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Similarly, there are options to make payments or to let the interest “roll-up” into the mortgage.