Pay Off Your Existing Mortgage with Equity Release

As you approach or enter retirement, it can be troubling to find yourself tied to an outstanding mortgage. It’s likely your regular income could drop, meaning you may find it more difficult to keep up with payments; potentially leaving you in a troubling position.

Usually, retirement is billed as a time to unwind. The stresses of everyday life are left behind and, it’s thought, you can enjoy life more.

However, with financial concerns, it can feel impossible to have peace of mind. And the importance of the situation is not lost on most.

Your safety net

Your home is supposed to be your safe haven. A place to protect you and one which cares for you as much as you do it. When retirement comes, the last thing you want is to be concerned that your safety net may be ripped out from under you.

But if you’re struggling with your existing mortgage, it’s a very real possibility, particularly for those with an interest-only mortgage.

How to tackle your interest-only mortgage

If that’s you, one day you could be presented with the situation you may have been dreading – the end of your agreement. It’s time to pay the balance, but you can’t.

There aren’t many situations which will cause as much stress or worry throughout your life. Making a property your home takes time, effort and money, and to have the very real proposition of all that being taken away from you is harrowing.

Nonetheless, it’s something you can’t ignore. Of course, you can try to renegotiate a deal with your provider, although for many, that’s not an option.

You could find yourself in this situation for many reasons. Life isn’t always as simple as we’d like it to be. But you’re not by any means the only homeowner going through something like this. An average of more than 80,000 households a year have faced the end of their interest-only mortgage deals since 2018.

And it’s not only those with an interest-only mortgage who may be concerned either. Retiring with any type of outstanding mortgage can cause a lot of stress. Is your new income flexible enough to cover repayments as well as everything else you need in life? If not, there are options available to you.

Equity release could be one of them.

Equity release

Every year across the UK, thousands unlock some of the tax-free cash tied up in their home through equity release after taking our expert advice

We’ve helped more than a million people decide if it’s is right for them. And from those who do, more than a quarter use some or all of their money to clear their existing mortgage.

Retired Buckinghamshire couple Patrick and Christine are just one example. They wanted a way to pay off their existing interest-only mortgage, but didn’t want to be left without savings.

“Our mortgage provider was aware of our situation but unfortunately could not help us. Instead, they suggested a few options to look into to improve our situation. One of which was equity release to pay off the outstanding mortgage so our savings remained untouched.

“After looking online, Key appeared to be the most respected and reputable equity release company. We did our research and agreed that this would be the best option for our needs.

“We contacted Key who organised for an independent adviser to visit us and discuss our options. He was very helpful. There was no pressure to proceed.

“When we did decide to go ahead, the process was very smooth and we felt relieved to have finally paid off our existing mortgage. It had felt like something was hanging over us. Now we can just enjoy our retirement without worrying.”

Your next steps

If you too would like to enjoy your retirement without worry, we may be able to help

It’s easy to see how much you could unlock from your home. In less than 60 seconds, you can find out your potential release amount, the rates, and the lenders which may be available to you using our our free equity release calculator.

Alternatively, if you would like to discuss your options with an independent equity release expert, request a free call back by filling in our short form.

Retirement is a time to enjoy life. So, take back control with equity release.

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Things to consider

Our specialist equity release advisers search our entire product range to find the right equity release plan for you. They’ll explain:

You have to get advice before releasing tax-free cash from your home. Please read all our information and make sure it's right for you
Key Equity Release offer lifetime mortgages only, which is a loan secured against your home. It will reduce the value of your estate and may affect your entitlement to means-tested benefits
All of our plans meet the Equity Release Council standards and come with several protections, including the no negative equity guarantee, which means you’ll never owe more than your home’s value
You should always think carefully before securing a loan against your home

Using equity release to clear your outstanding mortgage