Expert insights into later life mortgages

While entering the golden years of life, many individuals are often confronted with the realisation that their pension provisions are not enough to allow them to enjoy their retirement to the full. In recent cases, as a result of the current cost of living crisis, many are even struggling just to make ends meet.

As such, many homeowners are turning to later life retirement mortgages to release some of their wealth tied up in their homes as a solution to this problem.

What are later life mortgages?

Later life mortgages, also known as equity release or lifetime mortgages, are financial products designed to allow homeowners aged 55 and above to access the wealth that is tied up in their home which is referred to as their “equity”.

Unlike standard income-assessed mortgages, later life mortgages do not require regular monthly repayments. Instead, the borrowed amount, plus interest, can be repaid when the homeowner passes away or moves into long-term care. This makes the product highly desirable for those entering later life with reduced income although it will reduce the value of your estate for your beneficiaries.

The benefits of later life mortgages

For those entering their twilight years, financial stability and peace of mind become paramount concerns for many. Later life mortgages can help homeowners maintain their independence, realise long-considered dreams, and ensure a dignified and comfortable retirement by offering:

Access to funds: One of the most significant advantages of later-life mortgages is that they provide homeowners with an initial tax-free cash lump sum and can also offer a drawdown facility which means they also have access to further funds which can be drawdown at a later date if and when needed which can be used to cover various expenses, including home improvements, medical bills, debt consolidation, or simply enhancing their quality of life as they enter the retirement phase.

Flexible or no monthly repayments: As mentioned earlier, these mortgages have no contractual monthly repayments, however, the customer has the choice to pay some, all or none of the mortgage interest and in some cases repay capital without incurring charges in order to mitigate the effect of rolled up interest and preserve the equity in the home.

Home certainty: A lifetime mortgage is no different to a standard mortgage in that it is a loan secured against your home of which you retain 100% ownership and therefore can continue to live in your home for as long as you desire and without interference. 

Later life mortgages are designed to enable homeowners to age in the comfort of their own homes as well as having the freedom to move.

Meet Joanne: Your trusted later life mortgage expert

Navigating the world of later life mortgages can be overwhelming, with various options and considerations to explore. This is where Joanne, our retirement mortgage expert with over 30 years of experience in the business can help!

As a member of the Equity Release Council, Joanne provides clear and transparent advice taking as much time as is needed to ensure you have a full understanding of the benefits of a later life mortgage as well as any potential risks. She can offer alternative financial solutions, including checking whether you may be entitled to any unclaimed benefits whilst also ensuring that you won’t affect any current entitlement to any benefits you may already receive.

Joanne spends time to understand your personal financial situation and works closely with her clients from the very first call, throughout the whole application process and beyond. Trusted friends and family are also welcome to be included throughout the entire process.

Embrace the opportunities that later life mortgages provide and take a step closer to financial security by getting in touch today!