| Property | Four-bedroom detached house |
|---|---|
| Location | Esher, Surrey |
| Client | Retired couple, aged 68 and 71 |
| Product | Later-life mortgages |
The challenge
The couple's interest-only mortgage was reaching the end of its term, with no plan to repay the balance. They did not want to downsize and their existing lender would not extend the term.
What we did
We arranged a retirement interest-only mortgage assessed on their combined pension income. We checked affordability for the surviving partner on a single pension. We explained that the loan is usually repaid on death or a move into long-term care, and compared the alternatives, including downsizing and a lifetime mortgage. They involved their children in the decision and took independent legal advice.
The outcome
The couple stayed in their home and cleared the old mortgage, with affordable monthly interest payments.
Later-life mortgagesMortgages for borrowers aged 50 and over, including lending into retirement and retirement interest-only.
Learn moreImportant: Your home may be repossessed if you do not keep up repayments on your mortgage. Equity release and lifetime mortgages can reduce the value of your estate and may affect means-tested benefits.