Later Life mortgage products are aimed at those approaching or already in retirement who are looking to release some of the equity in their home, for a variety of different reasons.
Many banks will not lend beyond the age of 70. However, we at CBM have access to lenders who take a more pragmatic approach to lending to older borrowers. Bespoke lending may be available where age is not the ultimate factor in the decision to lend.
Within the UK, lifestyles and healthcare are improving, resulting in a continual increase in life expectancy. As well as the population living longer and thus requiring mortgage products later in life, there is increased pressure on older generations to support younger family members, specifically to get on the housing ladder. With the equity in their homes, older family members could be well-placed to offer this support.
Lenders are reacting to this by placing an increasing number of later life lending products on the market to meet the demand of changing borrower profiles.
If the lending is against your residential address, then the affordability still needs to be met. But due to the generally shorter terms at this end of your life, most borrowing tends to be taken on an interest-only basis. Please remember that the balance of the mortgage will need to be repaid at the end of the mortgage term on an interest-only mortgage.