Lending options for people to relocate in retirement
Advice about choices and finances for the over-50s from Newbury Building Society
Borrowing in retirement needn’t be difficult. Our friendly, qualified mortgage advisers are on hand to make sure your mortgage is suitable for you and your circumstances, giving you peace of mind
PEOPLE are working and living longer and the number of people reaching retirement age with an outstanding mortgage debt is increasing, writes Karen Smith from Newbury Building Society.
Recent research from Legal & General Retail Retirement has also found that three million people in the UK aged over 50 are considering relocating as a direct result of Covid-19.
A year of lockdowns has led these over-50s to want to relocate to either move closer to family and friends, pursue a better quality of life or even move abroad.
If you’re heading in the direction of a well-earned retirement, or already enjoying the fruits of your labour, you may be feeling the same and starting to review your choices and your finances.
You may decide to take out a mortgage on your property or apply for additional lending on the mortgage you already have – actions probably not unfamiliar to you.
There are many different reasons those in or approaching retirement look to do this; downsizing to a dream retirement home, investing in a holiday bolthole, gifting a deposit to a family member to get onto the property ladder or, as the recent trends are indicating, to relocate to be nearer to other family members or have a better quality of life.
The good news is that there are lenders, like us, who can help and in a range of ways: n A maximum age at end of mortgage term of 90 years: We
lend up to the age of 90 across our entire mortgage range. This means the term of your mortgage may run until your 90th birthday.
This essentially means you have our entire mortgage range at your fingertips. n Retirement InterestOnly (RIO) mortgage: Our Retirement Interest-Only (RIO) mortgage supports borrowers 60 years and above who are retired and do not necessarily want to downsize their current property and wish to remain in their home. Borrowing in retirement needn’t be difficult.
Our friendly, qualified mortgage advisers are on hand to make sure your mortgage is suitable for you and your circumstances, giving you peace of mind. Remember: No matter your reason for seeking finance, it’s always advisable to obtain impartial advice from an independent financial adviser to help you fully understand the implications of taking out a mortgage in retirement. n Karen Smith is the sales manager at Newbury Building Society. Visit www.newbury. co.uk or call (01635) 555700.