I advocate a lifetime strategy for mortgages. It is my personal view and I can discuss it with you. While it may not suit everyone it could suit you.
As in all mortgage cases recommended by Brian McHugh, the term of the mortgage should be set to State Retirement Age of the younger borrower. The fact that the Department of Work and Pensions can utilise the equity in your property to pay for nursing home fees often makes lifetime strategies very appealing.
Once you approach State Retirement age, and should lifetime mortgages still exist, you can then consider entering a Lifetime Mortgage. From the age of 60 you can have at least 20% of the value of your home back as a tax free lump sum or an income. The choice is yours. The loan to value and other factors will affect whether this is possible.
Lifetime mortgages are not suitable for everyone. The value of your estate will be reduced and a lifetime mortgage will mean that you will no longer be eligible for some state benefits. We will take this into account when advising you.
If instead you wish to complete your mortgage in order to be debt-free, then you can sell your home and pay off the lender, or you can put in place investment vehicles at the time of setting up the mortgage such as savings, pension lump sums, ISAs etc to pay off your mortgage. Please remember that it remains your responsibility to pay off the lender in an Interest Only mortgage.
Please seek advice by contacting us.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.