# Interest only retirement mortgage



## m500dpp (Feb 17, 2006)

I am looking to release some equity from our property and am considering taking around £30k out with the property valued at around £300k. My pension is a bit short of what I need to live comfortably on now (I am 60) but with the state pension at 65 it will be no problem, the equity withdrawal will allow earlier retirement.

I am treading carefully as this is a bit of a dodgy area with none of the major lenders offering this. I can get a lifetime mortgage on which no repayments are made but the debt mounts very rapidly over the term and I want to pass on most of the property value to my children. I am after an interest only mortgage, which remains in place for life, repayment being out of the sale proceeds of the property. 

Anyone aware of a quality lender offering this?


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## S63 (Jan 5, 2007)

I'm 60 too and looked at equity release briefly, I'm no expert when it comes to these matters, al I know is the deals for someone our age are truly awful, they start to improve slightly when you reach 65 getting a whole lot better at 75 for all the obvious reasons. 

If you find something good please let us know.:thumb:


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## shine247 (Mar 1, 2010)

There may be options that you have not considered. If for example you have an unencumbered property (or mortgaged) and you want to borrow an amount for "home improvements" you could approach a main stream lender. For low amounts like that they would normally release the funds without worrying too much about what improvements you are doing. It may be that you will get a pension at 65 if you retire but if you considered working longer you could extend the term of the mortgage up to a possible 75 with some lenders. They just need to know the mortgage will end before you retire. If you decide to stop before and sell up that is up to you. Chances are you would have to borrow the money on a captial repayment basis because lenders are a bit cautious now about using your own residence as a repayment source. Plus they tend to like interest only mortgages paid off ealier in life. But the payments may not be too much more if you factor them into your intial advance a little. 

I am sure plenty of people take mortgages up to age 75 but in the end repay by other means and possibly change their mind about working to 75 also.

I only mention the above because it may give you an idea or two which you can look into more. Be very careful though and look out for early redemption fees etc.


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## S63 (Jan 5, 2007)

I'm assuming from his post the OP is mortgage free and looking for some equity release.


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## m500dpp (Feb 17, 2006)

> I'm assuming from his post the OP is mortgage free and looking for some equity release.


Yes correct, I have an interest only mortgage of a small amount but have the funds to settle it, but at .59% / base its worth just letting it run!


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## ardandy (Aug 18, 2006)

Could you downsize?

Or rent a room?


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