Mortgage advice that’s as unique as you are

We have many years’ experience in later life lending and can advise upon Over 55 mortgages such as Retirement Interest Only mortgages and Lifetime Mortgages. We offer friendly, professional advice to find the best solution to suit your own, individual needs.

What is an Over 55 mortgage?
As we’re all working longer and have more complex income structures, many clients have the need for a mortgage “after 55 and beyond. Many lenders recognize this and have special products with longer terms which cater for the older age group.

What is a Retirement Interest Only mortgage?
The Retirement Interest Only Mortgage (sometimes called a ‘RIO Mortgage’) is an interest only mortgage for later life. With most RIO mortgages, you only repay the loan when you sell your property, move into residential care or die. This type of mortgage may be suitable for someone who can afford monthly mortgage repayments but has no means of repaying the capital. They can be used for both purchases and remortgages. A RIO will reduce the value of your estate and could affect your entitlement to means-tested benefits. You still need to pass mortgage affordability checks to show you can afford the interest repayments.

What is a Lifetime Mortgage?
A lifetime mortgage is a type of equity release, and it enables you to release tax – free funds from your home, either as a lump sum or by several, smaller amounts. With many products, it might be difficult to choose the right product, we are here to guide you to select the right product for you. Instead, the interest is added to the capital, and it becomes repayable on either your death or entry into long term care. Lifetime mortgages can be used for many purposes such as to purchase a property, release a lump sum to fund home improvements which will increase your quality of life, or to release funds assist children or grandchildren. They can also be used as a means of repaying an existing mortgage. We’ll check if a lifetime mortgage is suitable as per your age and personal circumstances as it reduces any inheritance you leave, interest roll-up mortgages can mean the debt grows quickly due to compound interest, cash you get from your home could mean you’re ineligible for certain means-tested grants, benefits like Pension Credit and local authority support for care and others.

Eligibility criteria may apply for both RIO and LFTs.

For more advice and a personalised recommendation, please contact Karen on 07957883223 or info@valefs.co.uk and see how we can help.