Over 55 and need help with an interest only mortgage?

Over 55 and need help with an interest only mortgage? Mike Hodgetts from Lighthouse Platinum Wealth Management explains your options:

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 life-line that should not be ignored.
*Source Aviva

To find out if you are eligible, call Michael Hodgetts on 01473 730 999 or email [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.

Lighthouse Platinum Wealth Management Ltd is an appointed representative of Lighthouse Advisory Services Limited which is authorised and regulated by the Financial Conduct Authority.