If you have come to the end of your mortgage term and still have a lump sum to pay off your mortgage deal, you could use your retirement income to get a later life remortgage. The Halifax could be the right deal for you.
As the Halifax is authorised and regulated by the financial conduct authority, you could borrow with a flexible maximum age, and you don’t have to get a repayment mortgage, you can get an interest-only mortgage, where older borrowers can pay back the right mortgage deal when the house is sold.
With pension income and investment income after your retirement age a mortgage adviser can look at the available mortgage deals and get the lowest monthly payment. These mortgages have great interest rates and are often referred to as a RIO mortgage.
You need to have enough income of the right type and the lender may continually review your working habits. Many older borrowers can get rates very similar to those offered by building societies to people with salaried income.
If you prefer not to pay the interest on the mortgage, or you have evolving needs, older people can consider equity release in the form of a lifetime mortgage, where regular income is not necessary for these borrowing options as there are no monthly repayments.
Other property products, services and lenders include:
- Nationwide Building Society home improvements life mortgages
- Virgin Money appointed representative existing customers pensioner loan
- Aviva equity release with no repayments on your mortgage and no cut off age
- Natwest mortgages with a typical fee of £295
You can contact them directly for advice and more information.
Your home may be repossessed before the end of the term regardless of your age if you don’t make monthly payments in a timely manner.
Some of the most common pensioner mortgage products include Lloyds pensioner mortgages, Barclays mortgages for over 65, Post Office interest only mortgages for people over 60, Legal & General retirement mortgages and Nationwide BS later life mortgages.
Some of the most common LTV ratios of Lloyds later life mortgages for over 60s, HSBC lifetime mortgages for over 60s, Halifax equity release schemes for over 55’s, Legal & General interest only lifetime mortgages for over 70s, Bank of Scotland pensioner mortgages over 60 and Nationwide BS help to buy for over 60s are 45%, 60% and 70%.
Popular loan to value percentage ratios of LVE equity release schemes for people over 70, More 2 Life mortgages for people 60 plus, One Family pensioner mortgages over 70s, Yorkshire Building Society mortgages for over 65, Metro Bank interest only mortgages for over 60s and SunLife later life mortgages for over 60s are 45%, 55% and 70%.
Common loan to value ratios of Aviva mortgages over 65, Shepherds Friendly interest only mortgages for over 70s, Sainsbury’s mortgages for pensioners over 60, Principality Building Society mortgages for people 60 plus, Nottingham Building Society mortgages for people over 50 and National Counties Building Society later life mortgages for over 70s are 35%, 60% and 70%.
Difficult to finance property types include properties in poor condition, entirely tenanted properties, leasehold properties where the lease length is currently unacceptable, crofted houses and properties with leased solar panels.
Difficult to finance home variants include difficult roof structures, properties with pre-1945 asbestos or similar composition roof tiles, large concrete panel systems, freehold/feuhold flats (Scotland only) and flats above or adjacent to commercial premises.
Challenging to finance property variants include properties with land in addition to the domestic grounds up to a maximum property size of five acres, where the land is for normal domestic use, properties with grounds in excess of five acres, grades l and ll* Listed Buildings in England & Wales (Grades A and B in Scotland; A, B+ and B1 in Northern Ireland), properties where there is a self-contained part of the property or annexe, i.e. basement flat etc and properties that have a private water supply provided a contract is in place with an approved maintenance company for regular testing and maintenance.
Tough to finance home variants can include properties with legal agreements such as Overage, Clawback, Option, Pre-emption, or any onerous Restrictive Covenant, properties with any kind of structural defect, damp, dry or wet rot, property is uninhabitable, timber buildings and Reema Hollow panel, Schindler and Hawksley SGS, Stent, Stonecrete, Stour, Tarran, Underdown, Unity and Butterley, Waller, Wates, Wessex, Winget and Woolaway.