As we get older, our financial needs and priorities change. For many of us, this means considering
our options when it comes to mortgages. Whether you’re looking to downsize or release equity from
your home, there are a range of options available to older borrowers. In this article, we’ll be
exploring some of these options, with a particular focus on mortgages for over 60s.
Lifetime Mortgages: What Are They?
One option for older borrowers is a lifetime mortgage. These are a type of equity release product
which allow you to release cash from your property without having to sell it. Unlike traditional
mortgages, you won’t have to make any repayments until you either die or move into long-term
care. However, you will have the option to make regular or ad-hoc payments if this is affordable to
you and this will reduce the impact of rolled up interest, which compounds and will reduce the
equity in your home.
With a lifetime mortgage, you’ll typically receive a tax-free lump sum or regular payments, which
you can use for a range of purposes, such as paying off debts including an existing interest only
mortgage, funding home improvements, or helping family members onto the property ladder.
One of the main advantages of a lifetime mortgage over other equity release products is that you
retain ownership of your home, which some equity release plans do not and you are allowed to stay
in your home as long as you want while accessing some of its value.
However, it’s important to consider the potential downsides, such as the impact on inheritance for
your beneficiaries, the effect on means-tested benefits, and the potential for interest to accrue over
time, which will erode some or potentially all of the remaining equity in your home. Although it is
worth mentioning that you will never owe more to the lender than the value of your home, so there
is no negative equity.
Traditional Mortgages for Over 60s
If you’re looking to move home or buy a new property in later life, it’s still possible to get a
traditional mortgage, even if you’re over 60. Many lenders will consider applications from older
borrowers, although they may take additional factors into account, such as your income and
retirement plans.
The difference between a traditional mortgage over a lifetime mortgage is with a traditional
mortgage you will be committed to make monthly payments, whereas with a lifetime mortgage you
would not usually make payments and allow the interest to roll up which will be repaid when the
home is sold.
Some lenders also offer specialist mortgages for older borrowers, which may have more flexible
criteria, lower interest rates, or longer terms. It’s worth speaking to a mortgage broker to explore
your options and find the best deal for your circumstances.
Getting Advice on Mortgages for Over 60s
Whatever your needs and priorities, it’s important to seek professional advice when considering
mortgages in later life. The Mortgage Mum has a dedicated Later Life Lending team who can help
you navigate the complex landscape of mortgages for over 60s and find the right solution for you.
Our team can provide tailored advice and support, whether you’re considering a lifetime mortgage,
a traditional mortgage, or another type of lending product.
Conclusion
As we get older, our financial needs and priorities change, and it’s important to consider the best
options for our circumstances. Mortgages for over 60s can be complex and require specialist advice,
but there are a range of products and solutions available to help you achieve your goals.
Whether you’re looking to release equity from your home or buy a new property, the Later Life Lending team at The Mortgage Mum can provide the expert guidance and support you need.
Get in touch with our Later Life Lending team
To get started, simply visit our Later Life Lending Enquiry page and fill out the form. One of our advisers will be in touch shortly to schedule a consultation at a time that suits you.
Find out more about Later Life Lending and contact our Later Life Lending team here.
You can also follow our Later Life Lending team on Instagram, Facebook and LinkedIn for regular news and updates.
Photo by MART PRODUCTION / Pexels
