No mortgage and into retirement - the tune changes
What are the options?
— Re-locate
Your first consideration should be moving to a less expensive property or maybe sharing your home with a close friend or family member. Even renting part of your home can work in some circumstances.
It is never easy to leave a home full of memories but sometimes its necessary to free up money for other things rather than paying for expensive building maintenance.
Your home is important but is it stopping you from enjoying life and taking up all your surplus income?
— Equity release
A mortgage with no monthly payments where the loan is repaid from the value of your home when you die - or the house is sold when you decide to move or need to go into care.
The interest is added to the loan each month and accumulates until the day payment is due.
It is not possible to know how much the lender will take as this will depend upon how long the mortgage lasts, how much the property is worth at the time of sale and how much interest has accrued.
When can I take equity from my home like this?
You will need to be at least 60. If there are two of you then the younger will need to be 60 or older.
And, the older you are the greater will be the amount the lender will be prepared to advance to you.
— Home Reversion
This is an arrangement where the lender shares the ownership of your home.
They pay you a lump sum or an income in exchange for an agreed share.
As with 'equity release' they get paid when you die or go into care - there is no uncertainty about how much they will take as their share remains the same as you agreed with them at the start.
Other situations
- I am a first time buyer — click here
- I own and am planning to move home — click here
- I am staying put but need review my mortgage — click here
- I have financial problems and need advice — click here
