RETIREMENT MORTGAGES

Retirement mortgages tailored for you

A retirement mortgage is a specialised financial product designed to help older individuals release equity from their homes to support their financial needs in retirement.

What types of retirement mortgage products are available?

There are two options available – repayment or interest-only mortgages – depending on the requirements and retirement plans of the individual. These types of mortgages are typically available to homeowners aged 55+.

Lifetime Mortgage

This type of retirement mortgage allows homeowners to borrow a lump sum or receive a regular income stream by using the equity in their homes as collateral. The loan, along with accumulated interest, is repaid when the homeowner passes away or moves into long-term care.

Home Reversion Plan

In this arrangement, homeowners sell a portion or the entirety of their property to a provider in exchange for a lump sum or regular payments. They retain the right to live in the home until they pass away or move into care, at which point the property is sold, and the proceeds are divided between the homeowner or their beneficiaries and the provider.

Who could benefit from a retirement mortgage?

Retirees with Insufficient Savings

Individuals who have limited retirement savings may use a retirement mortgage to supplement their income, cover medical expenses, or finance home improvements.

Homeowners Wanting to Stay in their Homes

Those who wish to age in place and maintain their current standard of living may benefit from a retirement mortgage, allowing them to access the value of their property without selling it.

Inheritors and Tax Planning

Some homeowners use retirement mortgages to release equity for inheritance purposes or as part of tax planning strategies, aiming to reduce potential inheritance tax liabilities.

Debt Consolidation

Retirees with outstanding debts may use a retirement mortgage to consolidate and manage their debts more effectively.