Retirement Mortgage Equity Release

Published / Last Updated on 17/05/2021

What is a Retirement Mortgage for Equity Release?  Sometimes known as an 'IO' Equity Release (interest only).

  • A mortgage debt on your home.

How does it work?

  • It is an interest only mortgage scheme.
  • You release equity and interest is charged every month.

Do I have to make payments?

  • Yes, you pay the interest accrued each month.
  • Provided you meet the interest payments, the debt will remain the same.

Is my home safe?

  • You have a permanent right to live in your home until the day you die or sell your home or move or go into a care home
  • If you do pay the interest off, the equity release company may look to convert the mortgage to a lifetime mortgage or indeed take action to force you pay the interest off

How much equity can I release?

  • This will be linked to your income.
  • You will not be allowed to release more than you can afford

Who are retirement mortgages suitable for?

  • If you need flexibility to sell, move, have more money later
  • If you may inherit money meaning your wish to pay the mortgage off
  • If you plan to move, sell up and pay the debt off
  • If you have a high, secure guaranteed income

Can there be negative equity?

  • If you make all monthy interest payments, the debt will not mount up.

What sort of interest rates?

  • Interest rates are usually similar to normal mortgage rates and sometines around 1% higher
  • There are both fixed and variable interest rates

Can I release more later?

  • Yes, but again this will be linked to your income
  • You will only be allowed to borrow more if you can afford it
  • Contact  Call Back  Calculators


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