If you are a little older and still looking to take out a mortgage into retirement either on an interest only, capital repayment or lifetime basis but you're unclear which is the best option for you, why not try our Decision Tree below to obtain guidance on the type of scheme that might best suit your situation?
Do you wish to repay the funds in your lifetime?
Interest Only Mortgages Available to age 95 at high street rates which can be repaid by downsizing, lump sum payments or other means.
Would you be prepared to sell the property in return for a larger tax free cash sum but retain the right to live there rent free for the rest of your life?
Home Reversion Schemes
Available where you sell all or part of the property for a tax free cash sum.
Sell and Downsize?
Retirement and Lifetime Mortgages are available if you choose to downsize to a smaller property.
Would you prefer to pay the interest either monthly or via voluntary payments so that the amount owed would never increase?
Lifetime Non Roll-Up Interest Only Mortgages
Available where you pay the interest monthly so that the amount borrowed does not increase.
Available where you have no compulsory payments to make but have the option to make payments of up to 10% of the amount borrowed each year without penalty.
Lifetime Roll-Up Mortgages
Available where no payments have to be made, with all interest being added to the loan and the amount owed increasing year on year.
The decision tree above is for guidance purposes only. Before making any decision, you should discuss your individual situation with one of our friendly specialist advisers who will guide you through your options and produce any personalised illustrations you may require.