Mortgage Advice

Later life mortgages

Introduction

Pros and cons

Important Information

Introduction

Explore your options

A later life mortgage is a mortgage aimed at homeowners aged 55 or over and allows you to borrow money based on the value of your home, while continuing to live there. Later life mortgages include lifetime mortgages and retirement interest only mortgages.
Avoid selling or downsizing your home in retirement
Lower eligibility requirements over traditional mortgages
Feel more confident about your future
Range of options to suit your personal needs
Our Process

Your journey

Speak to an adviser

One of our financial advisers will contact you using your preferred method of contact to discuss your financial financial objectives and current circumstances.

Find a plan that works for you

Our advisers will take into consideration the financial goals and objectives that are most important to you and offer advice in meeting these goals and objectives.

Begin your journey

Now you're on the road to financial freedom. Your adviser will continue to support you throughout your journey with us, putting your needs at the forefront of every decision.
Considerations

Making an informed decision.

Benefits
Considerations
Later life mortgages can provide older homeowners with a source of cash that they can use to fund their retirement, pay for home improvements, or cover unexpected expenses.
Depending on the type of later life mortgage, homeowners may not need to make monthly repayments. Instead, the interest is added to the outstanding loan balance over time, which is then repaid when the property is sold or the homeowner passes away.
With a lifetime mortgage, homeowners can retain ownership of their property while still accessing the equity in it. This can be particularly important for those who want to remain in their homes for as long as possible.
Some later life mortgages offer fixed interest rates, which can provide peace of mind for homeowners who want to know exactly how much they will owe over the life of the loan.
The cash released from a later life mortgage is generally tax-free, which can be an important consideration for those who want to maximise their income in retirement.
Retirement interest-only mortgages are sometimes available from a younger age (50) and usually only repaid when your property is sold and are often easier to get than a standard interest-only mortgage.
Taking out a later life mortgage can reduce the amount of inheritance that you can leave to your beneficiaries. This is because the loan plus interest must be repaid when the property is sold or the homeowner passes away, which can reduce the amount of equity in the property that can be passed on to heirs.
Later life mortgages can be more expensive than traditional mortgages, with arrangement fees, legal fees, and other costs adding up over time.
Depending on the type of later life mortgage and how the funds are used, it could affect eligibility for certain state benefits, such as means-tested benefits.
The range of later life mortgages available is still relatively limited compared to traditional mortgages, and not all lenders offer them.
If the value of the property falls significantly or the interest added to the loan balance outstrips the growth in the property's value, there is a risk of negative equity, which means the homeowner owes more than the property is worth.
Having a retirement interest-only mortgage always involves paying off the interest as you go and the application process is slightly more stringent than with an interest roll-up lifetime mortgage.
Get in touch

Ready to start your journey with Absolute?

Speak to an adviser
Find your local office

Important Information

It is important to understand the risk associated with any form of financial product as well as the fees involved.

Risk Warning

Your home may be repossessed if you do not keep up the repayments on your mortgage.

Our Fees

A fee of £795 when you apply for an equity release product, we will also be paid a commission from the lifetime mortgage lender / home reversion plan provider.

A fee of £145 when you apply for a mortgage product switch or mortgage transfer, we will also be paid a commission from the lender.

A fee of £395 when you apply for a mortgage purchase or re-mortgage, we will also be paid a commission from the lender.

Our Insights

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