Later Life Lending in Coventry and Warwickshire

Getting a mortgage in your later life shouldn’t mean you have to struggle. There are now a myriad of products available to people who are over the age of 55 to help ensure they have the same financial freedoms afforded to those in the younger generation. From standard mortgages to term into retirement mortgages, retirement interest only mortgages to Equity Release there are solutions to help you access the money in your home. At The Mortgage Mum Warwickshire, we will fully get to know you and your circumstances, advise the mortgage most suitable to you and your family, and offer help and support throughout the whole process.

Term Into Retirement Mortgages available for residents of Leamington Spa, Warwick, Kenilworth, Coventry, Stratford-upon-Avon, and the rest of Warwickshire

A term into retirement mortgage is one that is organised using retirement income for affordability. This could be before you retire or during your retirement. Before retirement the lender will need to know your current and future income and the mortgage will need to be affordable on both individually. During retirement the mortgage will need to be affordable based on retirement income. A term into retirement mortgage can be organised as capital repayment mortgage or an interest only. There is a specified end date with this type of mortgage. If this is an interest only mortgage, another repayment method will need to be available to repay the loan.

Retirement Interest Only Mortgages (RIO) available for residents of Warwick, Kenilworth, Stratford-upon Avon, Leamington Spa, Coventry, and the rest of Warwickshire

A Retirement Interest Only mortgage is like a standard interest only mortgage such that a monthly payment is made. Where it differs is there is no specific end to the term, the mortgage is repaid upon sale of the property after death or entering into long term care. The mortgage is affordability based and as you make a payment each month, there will be no compounding interest.

Types of Equity Release Products available for residents of Coventry, Stratford-upon-Avon, Warwick, Leamington Spa, Kenilworth, and the rest of Warwickshire

If you are over 55 and wanting to release the equity in your home in Coventry, Leamington, Warwick, Kenilworth, Stratford-upon-Avon, or the rest of Warwickshire, it may be possible to release some of the money you have built up, without having a traditional mortgage or having to sell up and downsize. Instead, you may be able to release some of the equity you have built up in your property and use it as a lump sum or in smaller amounts as and when you need it. There are two main types of Equity Release available to residents of Coventry, Kenilworth, Leamington Spa, Warwick, Stratford-upon-Avon, and the rest of Warwickshire – a lifetime mortgage and a home reversion plan.

Lifetime Mortgages – available for over 55s

A Lifetime Mortgage is a plan that can allow you to free up some of the wealth in your home and continue to live there. The amount you can release depends on factors such as your age, your medical history, and the value of your home. With a Lifetime Mortgage you can decide if you would like to pay the interest on a monthly basis, to avoid it compounding, or you can choose to make partial payments, or not make any interest payments at all and allow the interest to roll up. In all cases the loan and any interest accrued will be payable when the property is sold. A disadvantage with this is the earlier you take the Lifetime Mortgage out, the less the lender will offer you and if you allow the interest to roll up, this can impact the amount of equity left in the property for your beneficiaries.

Home Reversion Plan* – for over 60s

A Home Reversion Plan is where you sell between 25% – 100% of your home to a lender in exchange for an agreed lump sum, or you have the option to take a regular income for life. Advantages of a home reversion plan are that you may be able to release more equity from your property than with a Lifetime Mortgage and you can benefit from increases in the property value from the unsold share. A disadvantage is you will not benefit from the rise in equity from the portion of the house you have sold. A major concern for many is the loss of legal ownership of a percentage or all of the property. *We do not advise on this, but we are happy to recommend you to a third-party Home Reversion specialist if you think this is an option you want to consider It’s important to note that Equity Release will reduce the value of your estate and may affect your entitlement to means-tested benefits. It’s also important to seek independent financial advice to make sure that it’s the right choice for you and to understand the potential impact on your finances and your beneficiaries.

If you are over 55 and wanting to release the equity in your home in Coventry, Leamington, Warwick, Kenilworth, Stratford-upon-Avon, or the rest of Warwickshire, it may be possible to release some of the money you have built up.

Alternatives to Term into retirement mortgages, retirement interest only mortgages and Equity Release (lifetime mortgages)

  • Selling your current property to downsize
  • Borrowing the funds you need from your family
  • Checking out local Government grants to see if you are eligible
  • Using other assets such as investments

Why use The Mortgage Mum Warwickshire for Later Life Lending?

Because we care.

Our ethos at The Mortgage Mum Warwickshire is doing the very best for our clients and looking after you with care and compassion. This is especially needed when making the difficult decisions of whether Lifetime Mortgage is right for you. The benefit of talking things through with us is that we have the knowledge of traditional mortgages and Lifetime Mortgage plan, so we can take an unbiased approach offering you the right solution for your needs.

What does the Equity Release Council do?

The Equity Release Council is a voluntary body which aims to ensure that its members are highly professional and act with integrity and transparency in offering high-quality products and services to customers. They set the standards for the equity release sector and have consumer safeguards at the heart of all that they do.

The Process

1. Contact us – You can call or email your initial enquiry and we will arrange a chat to find out what you are looking to do.
2. Consultation – We will arrange an initial no obligation consultation. This will typically be conducted at your home.
3. Time to Decide – Discuss your options with family or a friend or ask us more questions if you need more information to decide if you want to proceed.
4. Presentation – Once you have happy to proceed, we go off to source you the very best options based on your specific needs and criteria then come back to you with our recommendation. This part is best done face to face or over video link.
5. Appoint a solicitor – You can either use your own solicitor or we recommend a solicitor, if you choose a Lifetime Mortgage it will need to be a specific equity release solicitor. We will liaise with your solicitor to help the process move along smoothly for you.
6. Submit an application – We will complete the application form to apply for the Equity Release funds from the bank or Equity Release provider on your behalf.
7. Property Survey – The lender will appoint a surveyor to make an appointment with you to value your property before they make a formal Mortgage Offer.
8. Legal Work – Your solicitor will go through the Mortgage Offer with you and do the necessary paperwork needed to complete the transaction.