Are you retired and worried about your future?

Wednesday, 14th November, 2012

There are many people just like you either in retirement or approaching retirement, who are worried about their future.  If you are a homeowner you may be able to turn the money in your home into a tax-free cash lump sum you can use to enjoy your retirement.

House prices have increased over the years meaning many people now have substantial equity in their homes. Here at Complete Mortgages we can help you release this equity in your home giving you a lump sum to spend as you choose.

Lifetime mortgages are a great option, allowing you to keep 100% ownership of your home and live there for as long as you choose.  You do not have to make any monthly repayments during the term of the loan, as the repayment of the loan and interest on this loan are repaid by the sale of your property.  This does however reduce the value you have in your home and the amount of inheritance you leave will also be reduced.

You also have the option of a drawdown facility with this type of loan, allowing you to release more money in stages if you wish.  The additional money drawn down, as well as the additional interest, will again be added to the amount due to be repaid when the property is sold.

If you have sufficient income at present to make small interest payments then another option would be an interest only lifetime mortgage.  These types of products allow you to borrow money against your home in the same way as a lifetime mortgage, however you also have the option of paying some of the interest on a monthly basis.  This can be anything from 1% – 100% of the monthly interest.  This will reduce the amount owed when the property is sold, meaning you will leave a bigger inheritance for your family compared to the above lifetime mortgage.  These products allow the flexibility to switch to a full lifetime mortgage at any point.

As well as lifetime mortgages, there are also a number of lending into retirement products available.  These products allow borrowers to choose between paying just the interest on their mortgage (interest only) or paying off the loan as well as the interest through the monthly payments (capital and interest repayment).

There are a number of things to think about when taking out any type of mortgage or releasing equity in your home.  For example releasing the equity in your home could affect your entitlement to some state benefits and may affect your tax position.  Here at Complete Mortgages in Guildford, Surrey we provide a full advice service and guide you through all the options available.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Lifetime mortgages are equity release products. To understand the features and risks, ask for a personalised illustration.

We typically charge a fee of £349.00 for arranging a lifetime mortgage.