Welcome to Interest Only Lifetime Mortgages

The retired population is becoming increasingly astute in researching the best means of financing their retirement. They have seen the erosion of traditional interest only mortgages offered by the high street banks that previously assisted their retirement finances. We have heard the term ‘interest only time-bomb’ relating to the issue of mortgages with no repayment basis & where subsequent shortfalls will exist.

In response to demand, certain equity release providers have developed innovative mortgages for pensioners which help provide a release of equity, with the ability to manage & control the future balance by making partial repayments. The interest only lifetime mortgage has been created with consideration for the beneficiaries inheritance in mind.

In essence, the interest only lifetime mortgage enables homeowners over the age of 55 to release equity in the form of a tax-free cash lump sum by securing a mortgage on their property. They offer various equity release solutions including debt consolidation, home improvements, gifting to children, new car or whatever else are retirement needs.




Reasons for the Growing Popularity of the Retirement Mortgage

In our advisory role, we regularly witness understandable objection to traditional roll-up equity release schemes. This is due to the compounding effect of the monthly or annual interest & resultant escalating balance. Interest only retirement mortgage plans aim to address these issues by managing the future balance using repayments of interest and even capital, if necessary.

If this type of equity release mortgage is suitable for you, you will retain full ownership of your home and control over your final inheritance. By maintaining interest payments, the amount you borrow never increases and under certain schemes the mortgage balance can reduce, or even be repaid in full! Effectively, the capital and repayment equity release scheme is borne.

Unlike conventional mortgages the interest rate for this type of equity release is usually fixed for life. This gives you the peace of mind & certainty that your monthly repayments won’t increase enabling budget. Alternatively, new voluntary repayment lifetime mortgage schemes avoid the need for income verification under the Mortgage Market Review (MMR), introduced by the Financial Conduct Authority in April 2014.

Lifetime interest only mortgages run for the rest of your life & only repaid when the property is eventually sold. This could be when the last homeowner dies or needs to move into long-term care. At that point, the property is usually sold by the executors in order to repay the mortgage with any remaining balance passing onto the beneficiaries.

Here at InterestOnlyLifetimeMortgage.com we set out to explain how these various forms of lifetime mortgages work and how they can benefit homeowners over the age of 55…

Summary of our services

InterestOnlyLifetimeMortgage.com has identified an increasing number of people requiring a release of equity to support them in retirement. However, they have been prevented in doing so by traditional equity release schemes where the balance increases dramatically over time, resulting in an erosion of their inheritance. Alternative retirement solutions need to be considered.

In response to this, lifetime mortgage lenders have identified that retirees are looking for greater control over their equity release schemes. Providers such as Stonehaven and the Halifax Retirement Home Plan previously developed lifetime mortgages interest only schemes which allowed repayment of only interest. In essence –
Managing interest = managing the balance.

Pensioner mortgages have since evolved further with new lenders understanding the concerns of the baby boomer generation. Retirees have managed debt throughout their lives & still feel capable of doing so in retirement. Afterall, this generation has probably the best credit records & a fixed income to make repayments from! Which are the best retirement mortgages available?

InterestOnlyLifetimeMortgage offer whole of market interest only equity release schemes that can help control the future balance by flexibly making repayments of some, or all of the interest. Depending on your choice of repayment method, we have plans to suit. Now thanks to Aviva & Hodge even capital repayment without any penalty is possible!
more information here…