What is a retirement mortgage?

What is a retirement mortgage?

A retirement mortgage can be a godsend to people who are finding it hard to pay an interest only mortgage that’s coming to an end or want to help their family by finding money for a deposit on their first house. But, what is a retirement mortgage exactly?

A retirement mortgage is a mortgage which doesn’t have to be repaid until you die, sell the house or go into full time care. The amount you borrow against the house means you can release capital stored in your house without worrying about where you’re going to live. You only have to pay the interest on the loan and after the youngest borrower turns 80 or you’ve had the home for 5 years you have the option to stop paying this as well.

The catch with retirement mortgages

We should note that whilst these loans are a little different to a regular mortgage, you do still have to make your monthly payments on time or your house will be at risk of repossession. At least for the 1st 5 years or until you turn 80. There technically isn’t a minimum age for these loans, but they are usually aimed at people who are over 60. The catch is the house will most likely be sold when you pass away and the amount you can borrow is usually 40-60% of your property value.

What are the advantages of a retirement mortgage?


  • The payments tend to be much lower than normal mortgages
  • It gives you the change to save money
  • Paying the interest can stop it building up like on an equity release
  • You can avoid downsizing
  • There isn’t a fixed term loan making it more flexible
  • Often will offer free overpayments
  • You can pay off other outstanding debt


The Disadvantages and Advantages of Downsizing

Most people aspire to own large homes and gradually move up the property ladder over the course of their lives, but many people..

How to sell an inherited house quickly

It's always difficult when a loved one passes away – there's the grief you feel and then there's the complicated matter of dealing..

Sell A House With A Broken Boiler

Are you selling a house with a faulty boiler, and you don't know what to do? Selling property can be a highly profitable undertaking,..

Guide To Selling Property Privately

Are you looking to sell your home as cost-effectively as possible? Perhaps you need to sell your house fast? If that's the case, then..

Can I Sell My House Without An Estate Agent?

If you've decided to put your property on the market or you simply need to sell your house fast, you may have heard that estate agents..

How To Sell A House In The UK As A Non Resident

Do you own property in the UK, but you currently live abroad? If you're a non-resident selling UK property, you're probably asking the..

About the Author: MikeL


Related Posts

Get your cash offer NOW!

Recent Posts