Equity Release Advice

Interest Only Lifetime Mortgages

The Interest Only Lifetime Mortgage product has proven to become almost a lender of last resort in recent years & will probably do so in the future. With many baby boomers now reaching retirement harbouring the remnants of later life mortgages, this age group are looking towards remortgage options to refinance loans where the banks are reigning in their mortgage books. Interest only plans have also proved to solve other retirement needs.

Having been use to managing their debt issues throughout their lives, many feel comfortable knowing their retirement income can still service a mortgage in retirement. As such equity release lifetime mortgage providers have developed a range of plans whereby the interest can be repaid on a monthly basis throughout their life, thus maintaining a level balance. This provides a form of inheritance guarantee for any beneficiaries. …read more

Retirement Mortgages

Mortgages in retirement have become newsworthy as high street lenders now place restrictions on lending to consumers over age 65. This has led to increasing retirees concerns when either looking for new funding, or existing mortgagors looking to take additional borrowing. Worse still have been demands from high street banks such as Santander & Barclays demanding repayment of the outstanding balance when they would normally auto-renew.

Due to these age related lending restrictions, wider research is required into products such as retirement mortgages. These form of pensioner mortgages can act as an alternative funding source and have proved a financial lifeline for so many. By securing a loan on the property a retirement mortgage can provide a release of equity which can then be used at the homeowners discretion. Following this release, by making monthly payment of interest only will render the balance level for the whole term. …read more

Voluntary Repayment Schemes

Voluntary repayment equity release schemes were initially launched by Hodge Lifetime in 2013 & latterly by Aviva & are the first of a new breed of equity release plans which provide even greater flexibility over interest only lifetime mortgages. These two plans provide extra flexibility which will help keep improving the over 55’s lifetime mortgage marketplace. As a consequence of voluntary repayment plans being launched, we will hopefully evidence more retirees being assisted in their quest to improve their retirement lifestyles.

Where lifetime mortgages interest only schemes were designed to provide a disciplined way to control the balance of the equity release loan by keeping the balance level, voluntary repayment schemes take this one step further. Rather than having monthly payments which need to be maintained, voluntary schemes provide the facility to actually make repayments whenever the consumer requires and upto a maximum of 10% each year without ANY penalty. …read more

The information contained within the InterestOnlyLifetimeMortgage website is dedicated to providing clarity and valuable information on the alternative funding sources where traditional roll-up equity release schemes are not a viable option. Tradition is being replaced by innovation in an equity release market design to help the over 55’s embrace & enhance their retirement.