Research shows that in the UK there are around 600,000 interest-only mortgages with no repayment plan in place due to mature by 2020, a third of those due for repayment have an expected shortfall of over £50,0001. In order to provide more help and support for customers over 55 with outstanding interest-only mortgages, we have teamed up with an expert Equity Release specialist.
If you are worried about an outstanding interest-only mortgage or debt in retirement and do not want to sell your house in order to repay the debt, there could be a solution for you. According to Key Retirement, the UK's leading provider of Equity Release advice, homeowners aged 55+ across the UK have an average of £85,247 available to release from their homes to spend as they wish2.
Customers have been using this cash to repay existing mortgages, and to pay off credit cards and outstanding loans. Others use this cash for different reasons, including to make home improvements, go on holiday, and even to help family members get onto the property ladder. With a lifetime mortgage, the most popular type of equity release plan, there are typically no monthly repayments as the loan, plus roll-up interest, is repaid when the plan comes to an end.
With the expert help of our specialist adviser, you can find out if equity release is right for you. He will discuss the different types of plan available, including a lifetime mortgage, which is secured against your home. The adviser will explain how equity release will reduce the value of your estate, and may affect your entitlement to means-tested benefits. You should always think carefully before securing a loan against your home.
The specialist adviser this is referred to may charge a fee which would be confirmed to you in writing prior to any application being submitted. Equity release may involve a lifetime mortgage or a home reversion plan. To understand the features and risks, ask for a personalised illustration.
Equity release may impact the size of your estate and it could affect your entitlement to current and future means-tested benefits.
Do please contact us if you would like an initial chat.
1Source: FCA – Interest Only Mortgages - Findings Review.
2Source: According to Key Retirement analysis, the average amount available to release from homes across the UK was £85,247 as at Jan-June 2017.