News
Jun 13
How to Pay off an Interest Only Mortgage in Retirement
If you have an interest only mortgage and are heading for or in retirement, you may well have just received the shocking news that you are fast approaching your redemption date.
Perhaps you had planned to repay your mortgage by downsizing to a smaller property or selling up and moving in with relatives? If so, it may well be the case that you are facing the concern that stares many property sellers in the face lately: difficulty in selling.
And anyway, do you really wish to move home? Most people would say no, as they are happy living where they are. So what is the alternative?
If there is sufficient equity in the property, it can be released to pay off the capital on an interest only mortgage. And these days, thanks to new equity release plans that allow part or all of the interest to be repaid on a monthly basis, compound interest can be avoided providing there is sufficient income to cover the repayments.
A lifetime mortgage is a type of equity release plan that can be used to pay off a traditional mortgage. As with any equity release scheme, it is vital to take specialist advice before entering into a plan and this advice must come from an independent, whole of market equity release adviser who will carefully examine your situation and make sure this route is the right one for you.
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
Bower Mortgage Company: FSA regulated UK-wide mortgage advice from friendly, qualified, experienced mortgage planning specialists. Quality, face to face advice and a strong focus on building long term customer relationships. For money saving mortgage and mortgage protection advice, contact Bower on 0800 411 8668; e-mail info@bowermortgagecompany.co.uk.
