A Retirement Interest Only (RIO) mortgage.This might be referred to by lenders as an Unencumbered mortgage, or a Remortgage (even though it technically isn’t a re-mortgage, since there isn’t a first mortgage). A standard, small mortgage using your income to make repayments, as though your home was a new purchase.If you’re able to afford small monthly repayments, you have a few very useful options: Or, you could consider a Retirement Interest Only mortgage. Would anyone give me a mortgage?Ī: If you can afford the repayments, several lenders are offering “later life” mortgages of 10 or 15 years (sometimes longer) that will last until borrowers are in their 80s or even 90s. I have a reasonable income from pensions and investments, but not enough to give her a cash payout (she'll need about £30,000 as a deposit). Q: I want to save my daughter the uncertainty of renting and help her to buy her own home. How to get a " Second-time mortgage" on a property you own outright If you can afford it, you may have the option of repaying the monthly interest, slowing down the increase in the loan.Interest is charged on the amount you’ve borrowed, which can be repaid or added to the total loan amount.If you have a medical condition, you may be able to get an enhanced payment. The older you are, the more you can borrow.The amount you can take out of your home will depend on your age and the value of your property.The lending isn't conditional on your income. A major plus: you don't have to prove affordability.You retain full ownership of your home.If you have enough equity built up in your home, the Lifetime Mortgage payout can be used clear the outstanding amount on your original mortgage. You don’t need to have completely paid off your mortgage to be eligible.It allows you to release cash tied up in your home as a tax-free lump sum, or as an initial sum followed by periodic smaller payouts to you.Įffectively it's a loan secured against your home, usually repaid when you pay off the plan, you die, or you go into long term care. The amount you’re looking to borrow is too big for a personal loan from your bank: the usual limit is £25K, and it would need to be repaid in 5 years, with set monthly payments of capital and interest.Ī lifetime mortgage would allow you to borrow the money with no monthly repayments: the loan plus rolled-up interest is repaid when the plan ends.Ī lifetime mortgage is a type of equity release for borrowers aged between 55 and 95. Can I get a loan or a mortgage to build an extension my son will move into? I’ve been told I can’t get a remortgage because I don’t have a mortgage in the first place, and I’m 66.Ī: You’ll need to check planning permission as to whether this counts as a separate dwelling. ![]() Q: I’m retired and own a mortgage-free property valued at £350,000. Read more » How to get a " Lifetime Mortgage" on your home Many lenders are much more conservative on the loan-to-value they’ll offer on a holiday property, but we found them a building society who would go to 85% LTV. This London family were fortunate enough to own a Norfolk holiday home they could remortgage to release equity. Releasing £100K in equity from a holiday home So, what are the other ways you can access the value stored in the market price of your home?ġ Are you over 55 and wouldn’t be able to afford monthly payments on a new mortgage on your house? Skip to our Lifetime Mortgage solution.Ģ Have you paid off your mortgage on your house but now want to raise capital secured against it? Skip to Second-time mortgage and RIO mortgage.ģ Can you afford monthly repayments and want to take out a first mortgage on your home? Skip to First-time mortgage.Ĥ Do you need short term finance quickly? Skip to Bridging loans. ![]() If you’ve paid off your mortgage (or have never had one on this property), then sitting on top of 100% of the value of your home puts you in a handsome position to borrow money.Īnd yet, a couple of the most obvious funding routes – a mortgage extension, or a second-charge loan sitting behind your first charge mortgage – aren’t available to you. Or, you might have the opportunity to make home improvements or build an extension – and you want to get on with it now. ![]() From loss of employment to business closure, to children struggling with getting on the property ladder… ![]() Many homeowners look to access cash to help get through extraordinary circumstances.
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