Arranging mortgages for the retired...

Mortgages in retirement are becoming more and more common as on the one hand lenders recognise that people can continue to have significant earnings into retirement, and on the other hand lenders are also finding innovative ways of allowing retired people to release money from their properties without necessarily having to pay the debt back on a monthly basis.

Whereas it used to be the case that very few lenders would lend over the age of 70, or even 65, many are now scrapping their maximum age limits altogether, as long as applicants can show that they will have sufficient income in retirement to cover their monthly payments.

An even more recent development is that some lenders will now offer schemes that allow retired people to release the equity from their homes without having to pay the mortgage back on a monthly basis: the original loan, plus interest, is payable on the death of the borrower. These products can be complex and costly and it is therefore essential that you are made fully aware, through both mortgage and legal advice, of all implications before deciding to go ahead. Although we do not arrange these sorts of mortgages at MIAS, we can put you in touch with highly reputed companies specialising in just these schemes.