When clients approach us looking to change their mortgage due to retirement, they very often will ask us what a Lifetime Mortgage is. We tell them that in many ways, it is a lot like a traditional mortgage in that you borrow money against the value of your property. However, the big difference is that they are aimed at property owners over the age of 55 and they do remain current for the rest of your life – which is why they are generally referred to as Lifetime Mortgages.
Lifetime Mortgages can be set up to suit the client, and how this is done very much depends upon your personal circumstances. For this reason, we will never put forward options or quotations until we have had a confidential in-depth discussion with you about what you want to achieve and how we can best help you with that.
Offering some flexibility, Lifetime Mortgages can operate in a couple of ways; you may wish to make reduced monthly payments, in line with your income, or you can even suspend all monthly payments with the final sum being paid off at the end of the mortgage. Some lenders even allow partial repayments. It may sound odd and you may have some concerns about dealing with a mortgage that is quite different. However, aided by our skill, knowledge and experience, we can identify the ideal product for you and provide you with complete assurance that your financial situation will be stable and secure at all times, providing you keep to the terms of the mortgage; whatever we may determine those to be.
Maybe you are approaching retirement or have already retired and you have concerns with your current mortgage on your home? Perhaps you have approached your lender to extend the period of the mortgage and have been told that they will not do this due to your age? Alternatively, you may have tried to switch to a new mortgage but come up against major obstacles because your retirement income is considered too low.
The other major predicament that many retired homeowners are facing is that they have an interest only mortgage coming up for repayment and they have zero or insufficient funds to clear it. They are often worried that they will lose their home, which is not a pleasant scenario to be faced with at any age. A Lifetime Mortgage can help with all of these issues.
If you are over the age of 55, then this could be the ideal mortgage for you. Maximum age limits are often quite flexible and can be based upon property value rather than income.
Contact us at Lifetime Mortgages now and find out if this product is suitable for your circumstances. We treat every client individually and will only recommend mortgage products that we know will offer the ideal solution for you.