THREE OPTIONS FOR OLDER BORROWERS

money@mirror.co.uk

1

Mortgages into later life

A whole raft of firms have upped their age limits for lending.

Bath, Loughborough and Vernon Building Societies are among 15 that have no age limit for borrowers.

Family Building Society will lend up to age 95. Nationwide and Scottish Building Societies are among 10 that offer loans up to age 85, while seven building societies, including Furness and Newcastle, will offer mortgages up to age 80.

Note: You will have to pass the Financial Conduct Authority’s stricter rules on affordability with standard home loans.

2

Interest-only lifetime mortgage

An increasing number of building societies, seven currently (up from three in August) are getting into this market along with firms such as Legal & General and Aldemore Bank. These allow homeowners to borrow against the equity in their home and only pay the interest on the loan until the property is sold.

Note: Interest rates are really low and may go up in the future. If the property market dips, depending on the size of the outstanding mortgage, there’s a risk there may not be enough equity to clear the full outstanding loan.

3

Equity Release

You can unlock the cash tied up in the value of your home. This can be a way to clear, say an interest-only mortgage or debt. And it can help to boost finances in older age. There are usually no monthly repayments to make and you can live in your home for the rest of your life – or until you go into full-time care.

Note: It’s not the right move for everyone. You will need to have a big chunk of equity in your home to qualify for this and to make the figures work. You typically get around a third of the value of your property. And it can mean there is no inheritance left for your kids. ■

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