- Salli Anstey
GETTING THE MOST FROM YOUR RETIREMENT
The later life lending market has changed so much in recent years. Long gone are the products that combined variable rate interest-only mortgages with variable rate investment bonds resulting in insecure returns. In their place are a wide range of trade body governed and regulated products tailored to older borrowers needs and circumstances.
Whether you are 55 and your standard interest-only mortgage is coming to an end and you need a new plan to pay off the outstanding balance; or you are 70 and want to use the equity in your home to top up your retirement income or release some tax free cash, you might be surprised to find out how many options are available to you that offer both the security and the flexibility that you will need to make the most of your retirement.
RAISING FINANCES IN RETIREMENT
Here are a couple of popular options for raising finance using the value of your home, but there are so many different types of mortgages available based on your individual circumstances and needs, so all you need to do is contact us and we can discuss the product best suited to you.
RETIREMENT INTEREST-ONLY MORTGAGE: This type of plan is a loan that is income assessed as borrowers must still be able to afford to pay ongoing monthly interest payments, yet this allows you to remortgage your interest-only loan when it comes to an end – using the sale of your property to repay the debt.
LIFETIME MORTGAGE: This type of plan is a loan secured against a home-owners property that allows release of all or some of the equity that has been built up, to afford a more comfortable lifestyle in retirement or help out a family member financially. The Interest is charged on what you have borrowed, which can be paid monthly or added onto the total loan amount (no interest payments monthly). When the home is sold – the money from the sale is used to pay off the loan.
YOUR FUTURE – YOUR WAY
Don’t worry, we know these are crucially important decisions and very sensitive, so our expert advisers will consider your situation with care and compassion. We also know that you may have some concerns based on how the later life lending market used to look years ago, so check out our Frequently Asked ‘Concerns’ section below to help with that.
We offer a free no-obligation detailed review of your current circumstances and we’ll even visit you in person at your home with other family members present if you’d prefer. All our plans are regulated by the Financial Conduct Authority (FCA) and the industry body ERC. So, however you are planning to finance your retirement, our specialist advisers discuss your personal circumstances and explain all the options available to you in a way that is unbiased and easy to follow.
FREQUENTLY ASKED ‘CONCERNS’ ABOUT RELEASING EQUITY
IS USING MY HOUSE EQUITY SAFE?
Yes. The plans we recommend carry guarantees and features to ensure that you can release cash from your home safely and securely and must be overseen by a solicitor. All plans are regulated by the Financial Conduct Authority (FCA) and the industry body SHIP and can only be advised upon by professionals like ourselves who hold specific equity release qualifications.
WILL I END UP WITH NEGATIVE EQUITY?
No. As standard, all approved products and plans offer a “No Negative Equity Guarantee” that ensures that no matter how long you live or what happens to property prices, you will never owe more than the value of your home, so won’t leave your family with any debt. In fact, the ‘Protected Equity Guarantee’ available on some plans will enable you to protect a portion of the value of your home.
WILL I STILL RECEIVE MY STATE BENEFITS?
Yes. We will do a full assessment of the income available to you, to include any state benefit income received to ensure that any plans chosen will not affect these financial benefits.
WILL I REDUCE THE VALUE OF MY ESTATE?
You will be in control. Plans can allow you to release as much of the value of your home as you choose and from the start you will be taken through a personal illustration that lets you know how much money you could raise and what it will cost. In addition, you can guarantee a portion of your property you wish to be left to your beneficiaries.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
Private Wealth Mortgages Ltd is authorised and regulated by the Financial Conduct Authority (FCA), 12 Endeavour Square, Stratford, London, E20 1JN.