The options
The main routes
A standard mortgage into retirement. Many lenders will now lend to age 75 or beyond, provided you can evidence that your retirement income will cover the payments.
Retirement interest only. You pay the interest each month and the capital is repaid when you die or move into long-term care. You still need to prove you can afford the interest payments.
Lifetime mortgages and equity release. No monthly payments required, with interest rolling up over time. This reduces what is left in your estate and is a significant decision that needs specialist advice.
Deciding
Things worth thinking about first
This is one of the areas where the right answer depends heavily on your wider circumstances, and where family conversations matter.
- What your retirement income will actually be, from all sources
- Whether you want to leave a specific inheritance
- How any borrowing might affect means tested benefits
- Whether downsizing would achieve the same thing more simply
- What happens if one of a couple dies or moves into care
Your home may be repossessed if you do not keep up repayments on your mortgage.
Equity release and later life lending will reduce the value of your estate and may affect your entitlement to means tested benefits.