Ramsay Financial Ltd

Trusted Mortgage Advice

Later Life Lending

If you're struggling with finances in later life and have equity in your home then you could enjoy a more relaxing retirement than you imagine.

There are several types of mortgage available for those aged over 55 which are summarised below.

Retirement Interest Only Mortgage (RIO)

  • Can be available from age 50 whether you are working or retired
  • Has no end date, so you may never need another mortgage
  • The mortgage is repaid from the sale of your home or when you move into long term care
  • A good alternative to Equity Release if looking for a higher loan amount or if looking to service the interest
  • Can be used to purchase another property or to remortgage
  • Can be used for IHT planning and wealth management

Standard Interest Only Mortgage (TIO)

  • Can be available for borrowers aged upto 89 with no maximum age for repayment of the capital borrowed
  • Interest is paid monthly, and the capital borrowed is paid at the end of the mortgage term via a repayment vehicle such as pension lump sum, downsizing, endowment, ISA, sale of background property etc
  • Can be used for purchasing a new property, remortgage, home improvements, lifestyle or to help the children, IHT and wealth management
  • Suitable for those who don't qualify or who aren't ready for a RIO or Lifetime mortgage (equity release) product.
  • Often subject to minimum equity requirements

Lifetime Mortgage (also knows as Equity Release)

  • Usually aimed at homeowners aged over 55 or over with no maximum term
  • Allows you to borrow money based on the value of your home while continuing to live there and with no monthly repayments
  • The amount borrowed (plus any charges or interest accumulated) is usually repaid when you pass away or move into long-term care
  • Funds released in this way can be used for a number of purposes, including clearing existing credit cards and loans, gifting money to family, making home and garden improvements, going on holiday, paying off an existing mortgage, replacing the car
  • You will always own your home and it will never be repossessed as long as you abide by the terms and conditions
  • 'Inheritance Protection' can be factored in to guarantee there is a portion set aside for loved ones
  • Independent Legal Advice is required

If you wish to discuss any of these options, please either complete our contact form, email info@ramsayfinancial.co.uk or call 07593 607440