Getting a mortgage in your later life shouldn’t mean you have to struggle. There are now a myriad of products available to people who are over the age of 55, and in some cases 50, to help ensure they have the same financial freedoms afforded to those in the younger generation. From standard mortgages to term into retirement mortgages, retirement interest only mortgages to equity release, there are innovative solutions to help you access the money in your home. At Warwickshire Mortgages, we will fully get to know you and your circumstances, advise the mortgage most suitable to you and your family, and offer help and support throughout the whole process.
Mortgages for over 50s
Term into retirement mortgages
A term into retirement mortgage is similar to a standard mortgage but it extends past retirement. The mortgage is affordability based and a payment is made every month. You can set this up before you retire or during retirement. Before retirement the lender will need to know your current and future income and the mortgage will need to be affordable on both individually. During retirement the mortgage will need to be affordable based on your retirement income. This type of mortgage can be organised as capital repayment mortgage or an interest only and there is a specified end of term date. If the mortgage is organised via interest only, another repayment method will need to be specified to repay the loan at the end of the term, in some situations this can be downsizing.
Retirement interest only mortgages
A retirement interest only mortgage is like a standard interest only mortgage such that it is affordability based and a monthly payment is expected by the lender. Where it differs is there is no specific end to the term. The mortgage is repaid upon sale of the property after death or entering into long term care. At the end of the term the original amount borrowed is paid back to the lender.
Equity release products
If you are over 55 and wanting to release the equity in your home in Coventry, Warwickshire or further afield, it may be possible to release some of the money you have built up, without having a traditional mortgage or having to sell up and downsize. Instead, you may be able to release some of the equity you have built up in your property and use it as a lump sum or in smaller amounts as and when you need it. There are two main types of Equity Release available – a lifetime mortgage and a home reversion plan.
Lifetime mortgages – available for over 55s
A lifetime mortgage is mortgage taken against the property without the expectation of monthly repayments. There is also no affordability assessment. The amount you can borrow depends on factors such as your age, your medical history, and the value of your home. You can decide if you would like to pay some or all of the interest each month or not pay it and allow it to compound. In all cases the loan and any interest accrued will be payable when the property is sold at the end of the term. The end of the term is when the last borrower passes away or enters into long term care.
Home reversion Plan* – for over 60s
A Home Reversion Plan is where 25-100% of your home is sold to a lender in exchange for an agreed lump sum or a regular income payment for life. You would have a tenancy for life and if rent is payable it would be a peppercorn rent. Again there is no affordability assessment or monthly repayment.
*We do not advise on this type of equity release, but we are happy to recommend you to a third-party home reversion specialist if you think this is an option you want to consider.
It’s important to note that equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. It’s also important to seek independent financial advice to make sure that it’s the right choice for you and to understand the potential impact on your finances and your beneficiaries.
Why use Warwickshire Mortgages for equity release
Because we care.
Our ethos at Warwickshire Mortgages is doing the very best for our clients and looking after you with care and compassion. This is especially needed when making the difficult decisions of whether equity release is right for you. The benefit of talking things through with us is that we have the knowledge of traditional mortgages equity, so we can take an unbiased approach and help you compare all the solutions to find the right one for your needs.
Who are the Equity Release Council?
The Equity Release Council is a voluntary body which aims to ensure that its members are highly professional and act with integrity and transparency in offering high-quality products and services to customers. They set the standards for the equity release sector and have consumer safeguards at the heart of all that they do.
We are proud members of the equity release council.
What process should you follow?
- Contact us – You can call or email your initial enquiry and we will arrange a chat to find out what you are looking to do.
- Consultation – We will arrange an initial no obligation consultation. This will typically be conducted at your home.
- Time to Decide – Discuss your options with family or a friend or ask us more questions if you need more information to decide if you want to proceed.
- Presentation – Once you have happy to proceed, we go off to source you the very best options based on your specific needs and criteria then come back to you with our recommendation. This part is best done face to face or over video link.
- Appoint a solicitor – You can either use your own solicitor or we recommend a solicitor, if you choose a lifetime mortgage it will need to be a specific equity release solicitor. We will liaise with your solicitor to help the process move along smoothly for you.
- Submit an application – We will complete the application form to apply for the equity release funds from the provider on your behalf.
- Property Survey – The lender will appoint a surveyor to make an appointment with you to value your property before they make a formal mortgage offer.
- Legal Work – Your solicitor will go through the mortgage offer with you and do the necessary paperwork needed to complete the transaction.
Which areas do you cover?
We can help with equity release in Coventry, Warwick, Leamington Spa, Stratford upon Avon, Kenilworth, Nuneaton, Bedworth, Atherstone, Coleshill, Southam, Rugby and the surrounding areas in our office and the rest of the UK via telephone/ video call.