Retired people tend to be more conscious of the environment and eco issues. Some are even consciously selling their old property in order to purchase a new eco-friendly house that will help them to save money in their retirement. These savings can then be set aside for other purposes. Some retirees do not want to sell their old property in order to finance a new property. Others might have a cash shortage after selling their old property. They will therefore need to try & obtain some form of mortgage in their retirement to cover any shortfall; however, it is difficult for pensioners to obtain a mortgage since many mainstream lenders such as Santander will only lend to a maximum age of 75. But what happens if older homeowners are still in need of a mortgage or there is a requirement for the mortgage to run beyond age 75?
With the help of a qualified independent financial adviser, these homeowners can still potentially obtain a mortgage in retirement . An experienced financial adviser who specialises in retirement mortgages will be able to point out that interest only lifetime mortgages that are available for pensioners and that can run for the rest of their lives. In some cases, they will advise equity release mortgages which are loans that are secured against a property and do not require any monthly payments.
As people move through their retirement years, their health may deteriorate and they may become disabled or infirm. As a result, their existing property may become less accessible and unsuitable. It therefore becomes a necessity to look for home improvements or move to an alternative property which is more suitable to their current state. A mortgage in retirement might then be needed as the price of a new house may be more expensive and there may be a cash shortage.
This shortage can be bridged by applying for an equity release or an interest only lifetime mortgage. The financial adviser will be able to help them to identify the scheme that is available for house purchases and will make the necessary calculations to make sure that they obtain a sufficient amount that will not only bridge the difference but allow them to cover the addition costs, such as solicitors fees and stamp duty etc.
The financial adviser will help pensioners to identify the scheme with the best terms for purchase and the best interest rates, thus allowing pensioners to purchase their dream or new eco-friendly home.
