Mortgages for the elderly
Our Mortgage Service For Older Borrowers
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As your mortgage is such an important transaction, good advice is imperative.
Mortgages for the elderly
If you are an older person who is looking for a mortgage, it’s a good idea to find out all you can about mortgage options for people over 55.
As well as standard mortgage deals, mortgage options for the elderly also include equity release schemes. Essentially, an equity release scheme is a means by which you can unlock some of the money that is held in your property without having to sell the house or move out of it.
Equity release schemes are likely to vary from lender to lender in the details of how exactly they are structured, but there are basically two types of equity release plan. These are as follows:
Lifetime mortgage
A lifetime mortgage is similar to a standard mortgage in that you continue to fully own your home. You take out a loan secured against your home which lasts for your lifetime, or until you move into full time residential care and need to sell the property.
Lifetime mortgages can be taken out jointly and the amount that can be borrowed will depend on the age of the younger applicant.
You may be able to borrow up to a maximum of around half your property’s value, depending on your age, property valuation and other circumstances.
Home reversion plans
A home reversion plan could be an option for those older people who are prepared to become a co-owner of their property, but remain living in it.
With a home reversion plan, you sell a percentage of your property to a reversion company and continue to live there as a tenant. You can often choose to either take the money released as a lump sum, or take it as a regular income over a set period of time.
Speak to our specialist team to help you find the right mortgage option for you. To speak to one of our mortgage advisers click here »