Can I Extend My Interest Only Mortgage Past Retirement?
Yes, there may be options available for you to extend your current interest only mortgage past retirement. The good news is that if you have built up enough equity, we can probably help you stay in your home for as long as you wish.
What are my options for extending my interest only mortgage?
There are 4 main options available to you, these are:
What do my retirement mortgage options depend on?
Which option will be best and most cost-effective for you will depend on lots of things, here are some examples:
- Your current mortgage lender and product.
- What you have in place to repay the loan in the future.
- Your age and how long you are wanting to extend it for.
- How much you owe and the value of your property.
- Whether you live in the property or rent it out.
- Your income and employment status.
- Private pension provisions.
- Your outgoings and credit commitments.
- The number of dependents you have.
- Whether it’s a joint or sole application.
- Your credit score and lending capacity.
- The property type and construction.
- Your plans for the property.
- & Many more.
If your interest-only mortgage is ending soon and you are considering extending your term past retirement, it’s always advisable to leave yourself plenty of time to explore your options and make provisions.
Your current lender will usually start writing to you several years before your mortgage term ends to remind you how much and when your lump sum payment is due.
Approximately 12 months before it’s a good idea to seek independent mortgage advice to explore what is available to you and whether extending your term is possible. Whatever solution, you’ll have to do a new application which can take time to be assessed by underwriters.
About the Author
Dan Osman
Head of Later Life at UK Moneyman Ltd.
Dan joined the Financial Services sector back in 2002, but actually left the industry in 2008 before returning some years later. During the in-between years, he took a degree to become a Social Worker specialising in working with vulnerable adults.
Upon his return, Dan combined his experiences in the two sectors to become an Equity Release Specialist and he now heads up UK Moneyman’s Later Life Lending proposition. He genuinely believes in a holistic approach and always ensures his clients receive a proper consideration of all the options available, including non-lending alternatives to Equity Release.
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