Mortgages for pensioners

Just because you are retired or semi-retired it does not necessarily mean that you cannot get a new mortgage or remortgage. Mortgage plans have evolved over the years to cater for an ever increasing population of mature clients who are pensioners or semi-retired. Modern lending plans are available for clients over 60, 65 or even 75. Perhaps you have an interest only mortgage you wish to repay / extend or are looking to utilise your equity to release some capital? These are just a few examples of situations we have already come across and arranged solutions for.

To get the facts and figures for your scenario via a free, confidential quotation call our UK based mortgage team on 0800 298 3000 (freephone) or 0333 003 1505 (mobile friendly). Alternatively fill in our short on line enquiry form and we will contact you at your convenience.
Don`t leave it too long, utilise our 30 years of expertise to realise your goals.

Video transcript

Having a mortgage to pay off once you retire isn`t ideal as there are much fewer deals available and you don`t want to be making major home repayments when you`re meant to be enjoying your golden years. Fortunately, First Choice Finance is on hand to relieve the burden.

It used to be the case that most people had paid off their mortgages by the time it came to retirement, but that`s not necessarily the case any more as now, homeowners are more likely to take out deals later in life and some of these are interest-only mortgages or lifetime mortgages.

As a result, more than half (52 per cent) of people claiming Support for Mortgage Interest are retired, according to figures from the Department for Work and Pensions.

There are ways to avoid the need for this though, with downsizing being one option. That way, you can sell up and use the equity in your home that belongs to you to purchase a smaller property. However, many people don`t like the idea of being forced to move from their home of many years.

Getting a lifetime mortgage may be a more appealing prospect, as it will let you release equity without having to move out of your house. Instead, the money can be as you wish. If you have a decent income level you could even opt for an interest only lifetime mortgage meaning that you can stop the capital balance growing by paying the interest every month.

Rather than have to make capital mortgage repayments on this loan, you`ll be able to stay in your home until you die or move into full-time care, at which point the property is sold to pay off the mortgage balance and any equity left over is paid into your estate.

It can be tricky getting any kind of mortgage when you`re a pensioner, so it`s best to seek advice. If you are a pensioner looking for an interest only mortgage, a remortgage or a lifetime mortgage then discover more about how we can help by visiting firstchoicefinance.co.uk or by giving us a call from a landline it`s 0800 298 3000 or from a mobile it`s 0333 003 1505.

What Is Equity Release?

- Equity release is used when a homeowner wishes to release money from their home without making any repayments. It is restricted to people who are over 55 with a relatively small or no mortgage on their property. The two most established ways to do this are by either a home reversion scheme or a lifetime mortgage.

If you`re a homeowner aged over 55, equity release could help you to free - or `release` - equity from your home, so that you`ve got extra cash to spend on the things you want or need.

It is important to note the differences between equity release plans such as home reversion and lifetime mortgages compared to traditional forms of finance such as homeowner loans and remortgages.

Home Owner Loans And Remortgages

If you are looking to raise money for your home for virtually any purpose (debt consolidation, home improvements, a luxury holiday) and intend to make repayments to the lender then you should consider a loan or remortgage. These are available for people with regular income, those who own a property or those who pay a mortgage on a property and are aged between 18 to 75.

Equity simply refers to the difference between what your property is worth and any outstanding loans, such as a mortgage loan secured on the property. For example: Your house is worth £150,000. You have retired and paid off all your debts, including the mortgage. Your equity is £150,000. You bought your house for £100,000 with the help of a mortgage of £80,000. The value of the house is now £200,000 and the outstanding mortgage is £10,000. Your equity is £190,000.

It`s entirely up to you what you spend your equity on and how you receive it - you might want a one-off lump sum or you might choose regular monthly instalments.

Get Help Remortgaging

Remortgaging is the process of changing your current mortgage deal to an alternative mortgage plan, often with a different mortgage provider. There are many reasons to remortgage sometimes to find a better mortgage rate, change the payment schedule reducing or lengthening the term of your mortgage another reason to remortgage is to raise extra money either for a special purchase or for debt consolidation. Here at First Choice Finance we are experts at providing expert help and advice to remortgage your property, giving you step by step help from start to finish.

Why should I Re Mortgage with First Choice Finance?

First Choice Finance have a range of re mortgage deals, which are designed to meet your needs, we give you access to many mortgage providers with mortgage deals that are available on both variable and fixed rates. First Choice Finance offer an advised mortgage service which means we will strive to find you the best mortgage deal we can, the mortgage adviser will aid you through the remortgaging process from start to end.

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Homeowner Secured Loans 9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE) First Choice are tied to certain unsecured lenders.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on immovable property.

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.