Can I repay a standard mortgage with Equity Release?

Standard mortgage repayments can become a source of stress for many older people during their retirement or those hoping to retire early.

An Equity Release Lifetime Mortgage could provide a viable and accessible solution.

So, let’s say that you have a standard interest-only mortgage. You know that your mortgage is coming to the end of its term shortly, however, you have no repayment plan in place that will enable you to pay it off. Your pension income doesn’t leave a lot of wiggle room to facilitate your repayments, and you certainly don’t wish to sell up and move at this later stage in life.

This is a common predicament that many older people find themselves in.

So, what’s the solution?

Luckily, there are a number of suitable equity release products available on the market that can enable you to pay off your mortgage if you are aged over 55.

With an Equity Release Lifetime Mortgage, the amount you can release varies from 21-56% of the value of your home depending on your age. Different lenders offer a variety of plans and our experienced advisers can help you to find the most suitable plan for you and your circumstances.

How does it work?

Basically, it is just a more flexible type of mortgage with no end term as it does not need to be repaid until you (or the surviving partner for joint applications) move into long term care or pass away. It gives you the choice from roll-up plans that do not require any monthly repayments at all to interest-serviced plans and plans that allow you to repay the capital if required, there are a multitude of options out there.

Once your mortgage application has been processed and finalised, your standard mortgage will be repaid and from this time onwards, you will no longer be contractually required to make any further monthly payments to your mortgage lender.

If you are keen to explore equity release as a viable way for you to pay off your mortgage, contact us today. We are proud to offer a free, no-obligation consultation, free of unnecessary jargon.