Figures released from the Financial Conduct Authority (FCA), show that nearly 40% of borrowers taking out a new mortgage will be over the age of 65 by the time the loan is repaid.
Why is this happening?
With property prices increasing, first-time buyers are often having to wait until their thirties before they buy their first home. They are often struggling to save enough for their initial deposit.
Lenders are aware of this and are also willing to offer deals over longer periods to help first-time buyers meet the monthly repayments.
Additionally, lenders are relaxing their lending rules, allowing terms to run past the traditional retirement age. Many lenders have now extended their mortgage age to 80 or have no maximum age at the end of the mortgage term.
What about older borrowers?
Some lenders are targeting older borrowers as they look to release the cash built up in their homes. These retirement interest-only mortgages known as RIO’s are slowly becoming more popular. The loan is secured against your home. You only pay the interest and the debt remains the same and is repaid when the property is sold.
How Anstee & Co can help you with your mortgage.
We are a firm of Independent Mortgage Brokers. The financial advice we offer is unbiased. We look at all the options available to you from the “whole of the market”.
You can review the current best buys from our website which is updated daily. Remember the lowest rate is not always the most suitable mortgage for you.
Why not arrange a meeting with one of our mortgage advisers. The initial fact-finding meeting is free and without obligation. Meetings can be arranged at a time and location that is convenient for you. This includes your home or place of work. Our Head Office is located at-
- Kettering, Northamptonshire
Our advisers also live and make use of meeting rooms in –
- Wellingborough
- Market Harborough
- Bedford
- Northampton
We make full use of video conferencing facilities such as-
- Zoom
- Microsoft Teams
- Skype
- Facetime
Additionally, we can also arrange a conference telephone call. There is no need to visit an office as all work can be handled remotely.
So, if you have any thoughts or comments on this article, “Paying off your mortgage in retirement.”, then we would love to hear your thoughts.
Finally, the information contained in this article is for information purposes only and does not constitute advice. No action should be taken based on this information alone. Anstee & Co. is authorised and regulated by the Financial Conduct Authority (FCA).
AS A MORTGAGE IS SECURED AGAINST YOUR HOME, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
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