Mortgages

Later Life Borrowing

Later Life Borrowing

Later Life mortgage products are aimed at those, approaching or already in retirement, who are looking to release some of the equity in their home, for a variety of different reasons.

Many banks will not lend beyond the age of 70. However, we have access to lenders who take a more pragmatic approach to lending to older borrowers. Bespoke lending may be available where age is not the ultimate factor in the decision to lend

Within the UK, lifestyles and healthcare are improving, resulting in a continual increase in life expectancy. As well as the population living longer and thus requiring mortgage products later in life, there is increased pressure on older generations to support younger family members, specifically to get on the housing ladder. With the equity in their homes, older family members could be well-placed offer this support.

Lenders are reacting to this by placing an increasing number of later life lending products on the market, to meet the demand of changing borrower profiles.

Why borrow in later life?

  1. You may not be ready to downsize, and wish to secure a mortgage product to fund improvements on your current home.
  2. You may be looking to purchase a new property in which to spend your retirement, in the UK or abroad.
  3. You may wish to support younger family members, whether this to be to help them get onto the housing ladder or help with university fees etc.
  4. You may wish to free up some cash in order to enjoy your retirement.
  5. You may have a maturing interest-only mortgage, and want to arrange a remortgage.

Which products may be available to you?

Even if you may not have considered a mortgage as a suitable solution, we may be able to offer you a viable long term solution, to help the next generation in their financial future, or to help you stay in your home for longer.

Retirement Lifestyle Boosters

The Retirement Lifestyle Booster is an interest-only mortgage that pays you a fixed sum each month for 10 years to enhance your income, while you repay the interest on the loan. There is also the option to receive a lump sum at the beginning of the mortgage term. This product is suitable for you if you have paid off your current mortgage and would like to free up some cash with which to enjoy your retirement.

Guarantor mortgages

A Guarantor mortgage permits parents to help their children get onto the property ladder. Mortgage lenders will take into account your earned income in addition to your child’s income, thereby boosting their borrowing power. Some lenders are happy to accept a parent acting as a joint applicant on the mortgage, without the parent appearing on the property Title Deeds.  It is important to note that guarantors will need to seek independent legal advice with regards to the impact of acting as a guarantor

Offset mortgages

An Offset mortgage is a family mortgage product whereby your savings are offset against the balance of your family member’s mortgage, or where your savings can be counted towards the family member’s deposit and then repaid back to you after 3 years. The more savings are placed in a linked account, the more your family member can save on interest payments.

Gifted deposits

You may wish to gift a deposit to your children or grandchildren to buy a new home. By choosing a product with this option available, you are able to release equity from your home for a gifted deposit.

Remortgaging

Your current interest-only mortgage may soon be maturing. If so, you may be interested in remortgaging to extend the term of your interest-only mortgage. Click here to read one of our case studies, where we help a client in their 60s secure a £1.7 million remortgage.

Equity Release

It is important to differentiate these mortgage products from Equity Release products. As an alternative form of borrowing it may be worth considering. Equity release, however, isn’t right for everyone, your Mortgage Manager will let you know if they believe it’s not suitable for you.  Before releasing equity from your property, you should consider discussing this with your family and seeking legal guidance. This is a lifetime mortgage.  To understand the features and risks, ask for a personalised illustration.

 

Your home may be repossessed if you do not keep up repayments on your mortgage.

 

How can we help you source the funds you need?

Our Mortgage Managers have a wealth of knowledge and experience dealing with complicated circumstances and requirements. We take the time to fully understand your position and offer bespoke mortgage solutions. We not only talk you through which products are available but also help you weigh up which is right for you.

We are very well placed, with our relationships with over 80 niche lenders, private and high street banks, to assist you in sourcing a suitable mortgage product for your needs.

If you are in later life and considering taking out a mortgage for any purpose, you can request a quote or give us a call today. One of our specialist Mortgage Managers will be in touch with you to talk you through your options.

 

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

  • This Month's Top Fixed Rate

    Fixed rate
    Initial rate: 1.13%

    Period: 2 Year

    Rate will revert to the lender's standard variable rate currently 4.74%
    The overall cost for comparison is 4.17% APR

    1.13%

    More info
  • This Month's Top Variable Rate

    Variable rate
    Initial rate: 0.99%

    Period: 2 Years

    Rate will revert to the lender's standard variable rate currently 3.74% which will not go below a floor of 3.49% thereafter
    The overall cost for comparison is 3.36%

    0.99%

    More info

    Get This Rate


Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.

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Tel: 020 7519 4900
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YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
Changes in the exchange rate may increase the sterling equivalent of your debt

Largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, 12 Pepper Street, London, E14 9RP which is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register No 302228 which can be viewed here: www.fca.org.uk/register/. The Financial Conduct Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice. Help and advice in regards to mortgages is available at www.moneyadviceservice.org.uk

Largemortgageloans.com Limited is registered with the Guernsey Financial Services Commission, reference number: 2269418, as a Non-Regulated Financial Services Business.

A typical fee of 1.17% of the mortgage amount is payable. Of this, 20% is payable on application and the balance of 80% on completion. For example on a mortgage application of £300,000 the fee would be £3,510 in total. Of this, £702 (20%) would be payable on application and the balance of £2,808 (80%) on completion. The total fee is non refundable. We may also be paid commission from the lender. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Calls may be recorded for training and monitoring.
You may have to pay an early repayment charge to your existing lender if you remortgage.

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