Over 55 and Need Help with an Interest Only Mortgage?
This is a blog from Kerseys Wealth Management Ltd.
Are you one of the many who took out an interest only mortgage and are now facing repayment? Some will find that they cannot meet this cost through their savings and investments alone and, for those approaching retirement, this can be a particularly daunting prospect.
Selling your home may feel like the only option. But with 80% of over 45s wanting to stay in their home for as long as possible*, this can be a difficult decision to make.
For interest-only mortgage home-owners over the age of 55, your home can actually prove to be the biggest asset in resolving immediate financial pressures. By taking out a lifetime mortgage, you can release equity to bridge the shortfall and this can prove a lifeline for those wanting to remain in their home.
With a lifetime mortgage, you could get the cash needed from your home itself without facing monthly repayments. It is a lifetime commitment and the loan and accumulated interest is usually repaid when the home-owner dies or moves into long term care, subject to terms and conditions.
Equity Release is a safe and viable option for many but should only be considered alongside other alternatives and on the advice of an appropriately qualified Independent Financial Advisor. Releasing equity now will reduce the amount of inheritance you can pass on in the future so it is essential your family understand any new arrangement, and it could also affect your tax position and eligibility for means-tested benefits.
For those with an impending interest only mortgage repayment, it’s one possible lifeline that should not be ignored.
Find out more
To find out if you are eligible, call Michael Hodgetts, Kerseys Wealth Management Ltd
T: 01473 731 865 E: [email protected]
Equity Release may involve a lifetime mortgage or a home reversion plan. To understand the features and risks of an Equity Release scheme please ask for a personalised illustration. Equity Release may not be right for everyone. It may affect your entitlement to state benefits and will reduce the value of your estate. Check that this mortgage will meet your needs if you want to move or sell your home or want your family to inherit it.
Kerseys Wealth Management Ltd is an appointed representative of Lighthouse Advisory Services Limited which is authorised and regulated by the Financial Conduct Authority. The services of Kerseys Wealth Management Ltd are not the services of Kerseys Solicitors. However, the equity partners in Kerseys Solicitors have shareholdings in Kerseys Wealth Management Ltd. Kerseys Solicitors are authorised and regulated by the Solicitors Regulation Authority.