Experts in Specialised Retirement Lending Options
Retirement Mortgages.org.uk is a dedicated website created to educate retirees on possible financial options.
Not only do we provide information about all retirement mortgage plans below, we also provide helpful tools such as comparison tables and calculators to enable free calculations of your maximum release sum. We also provide a client-facing smartER research tool that will determine your eligibility for equity release before presenting you with the plans available to you. Along with their interest rates and maximum cash releases based upon your personal criteria.
As we're an independent financial service company we are able to provide information about all financial products and offer you the open market option.
We have highly qualified independent equity release advisers located nationwide. Available by email, phone, live chat, or face-to-face!
Find A Local Adviser
If you an unsure whether equity release is right for you, then an equity release calculator can answer those questions by explaining how much equity you can release from your property.
Use a Free Equity Release Calculator
Are you looking for the best retirement mortgage deal possible to you? Well, our comparison table will evaluate the pros and cons of each scheme along with rates, APR and exclusive incentives.
Compare Retirement Mortgage Deals
Below are all the Retirement Mortgage providers and their plans, rates, APR, incentives and history. For a full comparison of the best products, then please visit our Mortgage Schemes page.
There are a number of types of retirement mortgages currently available in the equity release marketplace. In a general sense, a retirement mortgage is a loan secured against a property that originates either shortly before retirement or during retirement. Lenders have tightened their lending criteria since 2014 when the Mortgage Market Review was introduced. This has made securing a mortgage more challenging, particularly for homeowners over the age of 65, but there are still options available.
Retirement mortgages may be secured for a predetermined period of time such as 10 years or it could be for the remaining lifetime of the homeowner(s), however long that may be. The homeowner must make payments in accordance with the terms outlined in their product and mortgage deed. For those products arranged on the lifetime of the homeowner, the product lasts until the home is sold which typically takes place when the last remaining homeowner either passes away or moves into long term care.
Because there are a variety of retirement mortgages currently available, the kind of plan available to the homeowner will depend on a number of factors including the homeowner’s income and financial situation. The homeowner must be prepared to provide verification of their income and lifestyle.
Interest Only Lifetime Mortgages are a unique addition to the equity release marketplace. While they work similarly to a standard lifetime mortgage scheme, they also allow for protection of inheritances. Instead of the interest simply rolling up, as would be the case with a standard lifetime mortgage, an interest only scheme allows for monthly interest-only payments.
Interest only Lifetime Mortgages follow much the same standards and eligibility requirements as standard lifetime mortgages, including a minimum age of 55. Both the homeowner’s age and the property value being factors used in the loan-to-valuation formula.
There are a number of unique features and advantages to using an interest only lifetime mortgage. To start, they come with a fixed interest rate for the lifetime of the loan. So, the monthly payments are known at the outset of the loan. There is also a dependability when it comes to the mortgage balance. Because interest payments are being made, the loan balance remains consistent. The loan exists until the final sale of the property, which typically takes place when the last homeowner passes away or moves into long term care. However, there is also an option to port these mortgages to a new property provided that the new property is eligible for the product. Lastly, the homeowner has the choice to change over to a standard roll-up interest scheme if desired. Disadvantages associated with an interest only lifetime mortgage include having to keep up with interest payments to avoid an increasing balance and penalties that may be incurred if the mortgage is paid off early.
Voluntary Repayment Lifetime Mortgages provide an alternative product for the homeowner who wants flexibility in their repayment schedule. These mortgages allow the homeowner to make payments of interest and/or capital to maintain some control over the overall loan balance. With a voluntary repayment mortgage, the homeowner can repay up to 15% of the original amount borrowed every year for the lifetime of the loan without incurring any penalties.
In order to qualify for these schemes, the homeowner must be at least 55 years old and must own a property with a minimum valuation of £70,000. There is no proof of income required to qualify. This provides an option for those homeowners who may have been denied a standard mortgage product.
The voluntary repayment product is offered as a lump sum or drawdown lifetime mortgage with a maximum of 10% repayment of the original amount borrowed. There are a number of repayment options available. The homeowner can make repayments of only interest. The homeowner can pay the full 10% of the voluntary repayment allowance which over time would allow the homeowner to pay off the full balance. Lastly, the homeowner can choose to make random repayments when able. With this final option, the loan balance may still increase over time.