I have helped several clients who have interest-only mortgages. They planned to repay their existing mortgage by downsizing. This means selling their existing property and buying something less expensive, to clear the mortgage. However, in the current property market, they have had problems selling the property in time and so had found themselves with no means to repay the mortgage.
The solution has been to stay put for the time being and release enough equity to repay the loan using a Lifetime Mortgage.
A Lifetime Mortgage is a form of equity release. It allows you to take out a loan secured on your home which does not need to be repaid until you die or go into long-term care. This allows you to free up some of the wealth (equity) that you have tied up in your home. Lifetime Mortgages allow you to continue to live in your home.
Downsizing Protection means that the lender will not charge any early repayment charges after a set period if the property is sold and the loan repaid. So, the option to transfer some or all the mortgage to the new property is also an option available.
We are a firm of Independent Financial Advisers (IFA’s). This means that the financial planning advice we provide is unbiased. We will look at all the financial solutions that are available to you, not just Lifetime Mortgages.
Why not arrange a meeting today to see how we can help you. The initial “getting to know you” meeting is at our expense and is without obligation. Only when we have a full understanding of your situation and what you are trying to achieve will we make our recommendation.
We can meet at your home, place of work or our Head Office located at: –
Additionally, our financial advisers live and make use of meeting rooms in: –
If you have any thoughts or comments on this article, “Trouble Downsizing? How we can help you.”, then we would love to hear your views.
Finally, the information contained in this article is for information purposes only and does not constitute financial advice. No action should be taken based on this information alone. Anstee & Co is authorised and regulated by the Financial Conduct Authority (FCA).
Click on the above image to play the video.
These products are lifetime mortgages or home reversion plans. Equity released from your home will be secured against it.