Why you might consider later life mortgage
At retirement, people often find themselves with a significant amount of equity built up in their
homes but limited income to support their lifestyle. In such situations, a later life mortgage (alsoknown as Equity Release) can be an attractive option. Here are some reasons why you might
consider it:
- Access to cash flow: A later life mortgage allows you to access the equity you have built up in
your home providing you with a lump sum payment or a regular income stream to support your retirement lifestyle.
- No monthly repayments: Later life mortgage typically does not require you to make monthlyrepayments. Instead, the loan is repaid when the property is sold or when the borrower moves to a long-term care facility, or passes away.
- Flexibility: Releasing equity can be structured in various ways to meet your specific needs.
You can receive a lump sum payment, a regular income, or a combination of both. Some providers allow you to make partial overpayments or pay your interest regularly if you can afford to do so.
- No age restrictions: Unlike traditional mortgages, later life mortgages are available to borrowers who are 55yo or older.
- Peace of mind: A later life mortgage gives you access to cash flow and helps you meet yourfinancial needs without having to sell your home or downsize so you can enjoy your retirement without worrying about money.
- Inheritance planning: If you have significant equity in your home, a later life mortgage can bean effective way to release some of that equity and pass it on to your heirs while you are still alive.This can help you reduce potential inheritance tax.
- Home improvements: A later life mortgage can also be used to make home improvements ormodifications that can improve your quality of life and make it easier for you to stay in your home for longer.
- Gifting: A later life mortgage can also allow you to gift the money to your children or grandchildren and see positive changes in their lives.
With flexible repayment options, access to cash flow, and no age restrictions (though you do need tobe at least 55yo), a later life mortgage can provide peace of mind and improve your overall quality oflife in retirement. However, it is important to consider the potential risks and costs associated withsuch loans before making a decision. As a regulated Independent Financia Adviser I am here to helpyou, answer all your questions and advise if a later life mortgage can be a solution to meet yourneeds.
Lina Bourdon, Adv DipFA, CeMAP, CeRER, CertLTCP, PETR
Independent Financial Adviser, Chartered ALIBF
City & Country Financial Services Ltd
Tel: 020 3137 0500
Mob: 07730 561816
Equity Release may involve a lifetime mortgage which is secured against your property or a homereversion plan which requires the sale of property for a discounted price. To understand the featuresand risks, ask for a personalised illustration. You only continue to own your own home with a lifetime mortgage
City & Country Financial Services Ltd is an Appointed Representative of New Leaf Distribution Ltd.who are authorised and regulated by the Financial Conduct Authority. FCA Number 460421.