Much ink is spilled discussing the difficulties that young people face to get onto the housing ladder. At the other end of the spectrum, a growing number of people now expect to be paying their mortgage off into old age.
Longer loans
More than three in 10 homeowners now expect still to have a mortgage at the age of 65, a survey (1) has revealed, a figure that has risen from 26% just two years ago. Increasingly, lenders are happy to give an ordinary mortgage to older borrowers, something that used to be less common.
Options for older borrowers
Specialist mortgage options exist too. Retirement Interest Only (RIO) mortgages are the newest addition to later-life borrowing options, with over 55s able to apply for a loan between 50% and 70% of the value of their home. With RIO mortgages, borrowers only pay the interest, a feature that makes the mortgage more affordable in retirement.
Mixing pension and mortgage
Retirement planning can be a complicated business, working out exactly how much money you need to live on when you are no longer working. Adding mortgage payments into the mix adds a further layer of complexity. But the main thing to remember is that there are lots of options for borrowing later in life. There is no need to panic: speak to us to see how we can help you find the most suitable mortgage for your needs.
(1) HL, 2023
🚨 Data accurate as of the date of publication – 08.12.2023
🚨Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q4 2023
