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?
- You may not be ready to downsize, and wish to secure a mortgage product to fund improvements on your current home.
- You may be looking to purchase a new property in which to spend your retirement, in the UK or abroad.
- 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.
- You may wish to free up some cash in order to enjoy your retirement.
- 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.
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
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.
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.
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.
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