Mortgage needs can change as you approach or enter retirement. You may wish to move, remortgage or review borrowing on your current home. Age can affect lending criteria, but it does not necessarily rule out a mortgage.
What is a Later Life Mortgage?
Later life borrowing may include conventional repayment mortgages, interest-only mortgages and retirement interest-only (RIO) mortgages, depending on eligibility. Equity release products, such as lifetime mortgages, work differently and require specialist consideration.
Eligibility and Affordability
Lenders consider your age, mortgage term, current and expected retirement income, financial commitments and affordability. Pension income and certain other regular income sources may be considered.
Retirement Interest-Only Mortgages
With a RIO mortgage, eligible borrowers normally pay monthly interest while the capital remains outstanding. The balance is usually repaid following a specified life event, commonly through sale of the property. You must demonstrate that interest payments are affordable.
How We Can Help
We can explain available later life borrowing options and the implications of borrowing into retirement. Some arrangements may affect inheritance or means-tested benefits, and specialist advice may be needed. Contact RMJ Mortgages to discuss your circumstances.
Important Information
Your home may be repossessed if you do not keep up repayments on your mortgage.
Some later life arrangements may affect your estate, inheritance or entitlement to means-tested benefits.
