Are you over 60 and looking to explore your mortgage in retirement options?
The good news is that you now have more options than ever before. Mortgage lenders have brought a number of new products to the market over recent years to help home owners that need to borrow money in retirement.
Can I get a mortgage in retirement?
Even with a low income, you may have a number of options available to you. Here are the 3 main options that you have with mortgages in retirement:
1- A Standard Repayment Mortgage
2- A Retirement Interest Only Mortgage (RIO)
3- A Lifetime Mortgage (no income required)
You have 3 main options with mortgages in retirement. Firstly, you may be able to get a standard mortgage from a lender up the age of 86. Your next option may be a retirement interest only mortgage (RIO). Your final option could be a Life Time Mortgage, which is an equity release product. Here we look at each option in more detail.
Can I get a standard mortgage in retirement?
This depends upon your age and your income. If you have sufficient pension income and you can repay your mortgage before your 86th birthday then you may be able to get a standard mortgage product. Ask your mortgage broker about this.
Can I get a retirement interest only mortgage (RIO)?
If your pension income is sufficient to afford a monthly interest only mortgage, then a RIO mortgage may be your best option. You do need to pay monthly interest payments with this type of mortgage. The benefit is that the mortgage will have no end date or upper age limit. You can keep your mortgage for as long as you are living in your property. You can read more about RIO mortgages here.
MORE ABOUT RETIREMENT INTEREST ONLY
Is an Equity Release Lifetime Mortgage right for me?
If you don’t have sufficient retirement income to support a mortgage, then Equity Release may be the answer. With an Equity Release Lifetime Mortgage, you do not have to make monthly mortgage payments. Instead of making a monthly payment you can roll up your mortgage interest payments. This means that the lender is not concerned about affordability. Equity Release products are often used by retired homeowners on a low income. Read more about the Lifetime Mortgage Equity Release product here. This can be a good solution if you have a mortgage to repay.
How do I get help and advice?
Your mortgage adviser will be able to help and guide you through the entire process. To chat with a Later Life Mortgage Expert, you can get started right here:
Simply complete this enquiry form to get advice from your dedicated mortgage broker:
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As this is a lifetime mortgage, to understand the features and risks, ask for a personalised illustration.