Over the last few years, mortgage lenders have become more amenable to older borrows who are moving into retirement. We have seen mortgage rates improve and there’s now greater flexibility in the products available.
Traditional mortgage lenders are now will to extend the borrowing term of the mortgage beyond state pension age. The requirement that they look for is an income to support it.
It’s about affordability. Even if you are still working many people see their income reduce as they work fewer hours or look for less challenging roles. Although lenders have relaxed the age criteria they have tightened others. This then reduces the number of people that will be eligible.
What are the other options?
Lifetime mortgages have now become more mainstream. As new lenders come to the market, rates are reducing and the products are becoming more flexible.
Some people are using them to repay interest-only mortgages. Recent figures show that almost a quarter of lifetime mortgages were being used to repay interest only mortgages.Lifetime mortgages are also known as equity release. This type of lending allows you to stay in your family home which may be important if it has an emotional tie.
If you are on a lower income a Lifetime mortgage may benefit you from not having to make mortgage repayments, whilst still benefiting from any future property values.
The mortgage landscape is changing.
The equity in your home must be considered as a key consideration in any retirement planning process. Lifetime mortgages are and will continue to be, an important part of many people’s retirement plan. They will allow you to remain in your home and protect your assets.
A changing attitude toward retirement is seeing a more blended solution to meet your changing needs. Many people never retire in the traditional sense that just gradually change their work-life balance to suit their situation. This is one reason why you need a plan and that you review it annually.
How Anstee & co can help you plan your retirement.
Our Independent Financial Planners will work with you. Being independent means that we will look at all the solutions on the market. We are not limited to a few options. Our financial planners use cash-flow modelling tools so that you can see what your income in retirement looks like. We can then look at other scenarios to help you plan in the most tax-efficient way. Why not arrange a meeting today.
Meetings can be arranged at your home and at a time that is convenient for you.
We have offices located in-
- Birmingham, West Midlands
- London, Central London
- Kettering, Northamptonshire
- Stamford, Lincolnshire
Our Independent Financial Advisers (IFA’s) also make use of meeting rooms in Northampton, Bedford, Worchester, Towcester and Wellingborough.
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