The right mortgage option for you
There are many different reasons people want to borrow money in later life and many different ways to do it.
Retirement is changing with the state pension age inching up all the time. While some will choose to continue working, a
later life mortgage or
RIO can be a good tool for borrowing money against your home. However, everyone is different and – particularly in later life – will have a changing level of income as well as lifestyle.
Making the right decision of which mortgage is right for you depends on your own circumstances, including how much you need, if and when you could pay it back and how you could pay it back.
A
lifetime mortgage is one option for those who want to access some of the tax-free funds from their home without having to service the loan. This is because with a lifetime mortgage, there are typically no monthly repayments to make as the loan, plus roll up interest, is repaid when the plan comes to an end. Your home remains your own and the funds can be spent on a range of uses (popular reasons include home improvements, paying off an outstanding mortgage, clearing existing debt, travel and gifting).
As the market has evolved over the years, so have the plans, meaning that there are now more options to help you tailor the plan to your needs – including drawdown (taking an initial sum followed by smaller amounts as and when needed in the future), inheritance and downsizing protection.