LATER LIFE LENDING
Whether you are looking to pay off an existing mortgage, release equity from your home or you are keen to explore inheritance tax planning options, later life lending could help.
Later life lending solutions are mortgage products designed exclusively for clients aged 50 or over. They are a way of borrowing into retirement by securing a loan against your property, whilst you continue to live there.
Clients can use the loan for a variety of reasons in their retirement. This may include paying off an existing mortgage or remaining debts, funding home improvements to improve quality of life, once in a lifetime holidays or even inheritance gifts or planning.
lending options
Explore the later life lending options available.
Equity Release
Equity release is an umbrella term for a range of property finance products which allow homeowners over the age of 55 to access the cash (equity) tied up in their homes.
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Retirement Interest Only (RIO) Mortgage
Retirement interest-only mortgages, also called RIO mortgages, are products designed for older borrowers who may not meet the lending criteria for a standard mortgage, typically due to age.
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Residential Mortgages For Older Borrowers
Secure a residential mortgage in your golden years to remortgage at the end of your mortgage term, help pay off debts, make significant home improvements, gift to your family to help them to get onto the property ladder or spoil yourself to something ‘once-in-a-lifetime’.
Learn More| Equity Release Mortgage | Retirement Interest Only Mortgage | Retirement Interest Only Mortgage | |
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| How is the maximum borrowing amount calculated? | Equity release borrowing amounts are based on the loan to value (LTV) on the property, and your age(s) at application. | The borrowing amount is based on your ability to afford the mortgage interest payments for the life of the loan. You'll need to consider your current or future income and expenditure. For joint borrowers, affordability will be assessed on the lowest earner to ensure the surviving borrower is still able to maintain payments in the event of their partners death or admission into long term care. | The borrowing amount is based on your ability to afford the mortgage payments for the duration of the loan. You'll need to consider your current or future income and expenditure. For joint borrowers, affordability will be assessed on the total joint income, so you can potentially borrow more than with an RIO mortgage. |
| Is there a fixed repayment term? | There is no fixed repayment term as long as the loan is repaid at the point you acquire another property as a main residence, sell off your current property, moving into residential care, or death. | There is no fixed repayment term as the loan is repaid at the point you acquire another property as a main residence, sell off your current property, move into residential care, or death. | Yes, there is a fixed repayment term. This will depend on the lenders criteria and your personal circumstances. |
| Do I / We need to make monthly payments? | No. Interest payments are added to the outstanding loan amount, then the total amount is repaid at the end of the loan. | Yes. You'll pay an agreed interest amount monthly. No repayment towards the loan is required throughout the term of the loan. | Yes, you'll pay an agreed interest amount monthly. If the loan is on a capital repayment basis, then this will be reflected in your monthly payments which would also include your capital contributions. |
| Is interest rolled? | Yes, the interest can be 'rolled up' to one final amount, or you can service monthly. | No, the interest is paid monthly. | No, the interest is paid monthly. |
| How do I / We repay the loan? | You'll repay the loan from the proceeds of the sale of the mortgaged property. | You'll repay the loan from the proceeds of the sale of the mortgaged property. | You'll repay the loan from the proceeds of the sale of the mortgaged property if on an interest only basis, or from remortgaging to another lender or to an RIO or equity release product. If the mortgage is on a capital repayment basis, the mortgage will be repaid at the end of the mortgage term. |
“We understand that obtaining property finance later on in life can be daunting. With years of experience in this market, we are here to help. To receive the best advice tailored to your individual situation, contact our fully qualified equity release advisers for more information.”
Darren Johncock, Later Life Lending Director
LDN Finance are proud members of The Equity Release Council.
The Equity Release Council is the industry body for the UK Equity Release sector. Since its inception in 1991, the Council has enforced safeguarding and customer protection measures to promote high standards of conduct and practice surrounding advice on equity release solutions.
As a member of the Council we will provide you with a complete presentation of your options, fairly explaining the benefits and limitations of an equity release mortgage. We will also ensure you are aware of your obligations under the terms of the contract.
For more information about our involvement with the Equity Release Council click here. We are committed to providing impartial, whole-of-market later life lending advice. To learn more about the financial solutions available to you, contact our award-winning advisers.
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