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As the landscape of financial planning evolves, many are exploring mortgage options during their later years.
Whether you’re looking to release equity from your property, downsize to a more manageable home, or secure a mortgage to assist with retirement expenses, there are numerous options available tailored to later life applicants.
Understanding these options is crucial to making informed decisions that align with your financial goals and lifestyle.
In this article, we’ll delve into the various mortgage solutions designed for those in their later years, offering insights into how each option works and the benefits they can provide.
Later life mortgages are designed to provide flexibility, helping homeowners over the age of 55 leverage the value of their property to meet various financial needs.
Later life mortgages in Manchester come in a variety of forms, including equity release schemes, lifetime mortgages, and retirement interest-only mortgages. Each option offers distinct features and benefits, allowing homeowners to choose the best solution for their individual circumstances.
As a mortgage broker in Manchester, we understand that every customer’s situation is unique. That’s why we have introduced services in this area, offering tailored solutions to ensure that our customers can access the funds they need while securing their financial future.
Equity release in Manchester allows homeowners to unlock the value tied up in their property without having to sell it. This can come in the form of a lifetime mortgage or a home reversion plan, both of which offer different benefits and considerations depending on your circumstances.
A lifetime mortgage is a popular equity release option for homeowners aged 55 and over.
With a lifetime mortgage in Manchester, you can borrow a percentage of your property’s value while retaining ownership of your home. Interest is added to the loan amount, and repayment occurs when the property is sold, either upon your passing or when you move into long-term care.
This option allows you to access funds without the need to make monthly repayments, providing financial flexibility for various needs such as home improvements, travel, or supplementing your retirement income.
Home reversion plans offer a different approach to equity release.
With a home reversion plan in Manchester, you sell a portion or all of your home to a reversion provider in exchange for a lump sum or regular payments. You retain the right to live in the property rent-free for the rest of your life.
Unlike lifetime mortgages, home reversion plans do not accrue interest. Instead, the provider receives their share of the property’s value when it is eventually sold. This option can be advantageous if you want to guarantee an inheritance for your beneficiaries or if you prefer a lump sum without worrying about interest accumulation.
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Send our later life team a message and explore what options are available to you.
Retirement interest-only (RIO) mortgages in Manchester are designed for older borrowers who can afford to make regular interest payments on their loan.
The principal loan amount is repaid when the property is sold, either upon your death or when you move into long-term care.
RIO mortgages can be an excellent option if you want to manage your monthly expenses while maintaining ownership of your home. They are particularly beneficial for those nearing the end of an existing mortgage term who need a solution for repaying the capital.
Although designed primarily for younger borrowers, some older individuals may still qualify for standard mortgages, depending on their financial situation and income stability.
Standard mortgages involve regular repayments of both capital and interest over an agreed term. If you meet the lender’s criteria, this option can provide the necessary funds for purchasing a new home or refinancing an existing mortgage.
Later life mortgages offer several key benefits. One of the primary advantages is financial flexibility, as these mortgages allow homeowners to access funds for various needs such as home improvements, travel, healthcare, or other expenses.
Another significant benefit is the ability to stay in your home. With options like equity release, you can continue living in your cherished home while utilising its financial value.
Additionally, certain later life mortgage options do not require monthly repayments, providing further financial relief and flexibility.
However, there are important considerations and risks to be aware of. One key concern is interest accumulation. For instance, interest on equity release can accumulate quickly, which may affect the amount of inheritance you leave behind.
Furthermore, releasing equity from your home might impact your entitlement to means-tested benefits, which could alter your overall financial situation.
Lastly, it’s essential to be aware of the potential fees and costs involved in arranging these types of mortgages, as they can add up and affect the overall benefit of the financial product. Understanding these factors is crucial in making an informed decision about later life mortgages.
Securing a mortgage past the age of 50 may be a daunting prospect due to age-related restrictions. However, with recent advancements in lending practices, borrowing for over 50s has become significantly more straightforward, with multiple options on the table.
This article offers an exhaustive look at mortgages for older borrowers in the UK.
An ancient misconception is that lenders are hesitant to offer mortgages to individuals over 50 due to retirement-related income fluctuations.
However, in recent years, many lenders have taken a more open approach, shifting the age limit for mortgage conclusion higher. This makes age less of a restriction when it comes to securing a remortgage.
Mortgage lenders vary in the age limits they set for taking out mortgages. For example, some lenders consider your earned income up until age 70, while some will cap the borrowing age at 75.
Anything after this age could become more difficult, you may need to explore other avenues such as a lifetime mortgage in Manchester.
Make sure to do your homework and pick the lender that caters best to your specific requirements and retirement plans.
Regardless of the mortgage term you’re aiming for, achieving affordability is key.
Mortgage lenders will assess your current income along with your expected income after retirement. The borrowing limit is generally capped at four and a half times your income, though this can vary.
To get an accurate view of your affordability, simply speak with our mortgage advisors in Manchester and we can perform a free affordability assessment for you.
If you are looking to explore your retirement mortgage options in Manchester and are wondering whether it would be possible to get a mortgage… it is!
One of the main factors a lender will look at is whether you can demonstrate a stable retirement income that can cover your monthly repayments.
The process of securing a mortgage over 50 is quite similar to the traditional mortgage process. Mortgage lenders primarily focus on affordability, for both present and future scenarios.
Over 50 borrowers can consider exploring retirement interest-only mortgages or lifetime mortgages, depending upon their specific circumstances.
Usually, these options are a last resort for most applicants. This is why it is best to speak with a mortgage advisor in Manchester before making any decisions. It is always worth getting a second opinion!
Many of our applicants approach us about remortgaging to release funds from their property. With many above 50 having significant equity in their homes, remortgaging can potentially be a great way to access the equity within your home.
Taking money out of your property over 50 will come with certain limitations, however. There may only be a certain amount that you can take out or in some cases, you may not be able to.
If you are getting confused as to whether you can get a mortgage over 50 in Manchester, you should speak with a professional mortgage advisor in Manchester. Our advisors can provide insights and recommendations while helping you understand better the complex landscape of mortgages.
In conclusion, securing a mortgage after 50 in Manchester is not impossible! Provided you’re equipped with the right information and guidance, the process can be simple and easy-going. Age, as they say, is just a number!
Equity release has faced a lot of negative attention over the years, leaving many people in Manchester wary of considering it. Even though this is the case, much of this negativity stems from the way equity release was previously managed.
Thankfully, with the introduction of new regulations by the Financial Conduct Authority and standards set by the Equity Release Council, the public perception of equity release is improving, and more people are considering it as a viable option.
Despite this, there are still mixed opinions about equity release online, leading some to question whether it’s the right choice for them.
In this article, we aim to provide an in-depth look at the pros and cons of equity release in Manchester, so you can make an informed decision about whether it’s the right option for you.
At Manchestermoneyman, we believe that taking out an equity release plan can offer many advantages for later life applicants. One of the biggest benefits is the ability to access the equity that has been sitting within your property.
Our equity release plan in Manchester is offered through a lifetime mortgage, with two options available: tax-free lump-sum or tax-free drawdown facility. With the lump-sum option, you receive a one-time pay-out in full. With the drawdown facility, you can withdraw equity as and when you need it.
When it comes to repayments, you have options. During the lifetime mortgage, you will have monthly interest payments, but you do not necessarily have to make them.
Many choose to let the interest roll-up, leaving them without monthly payments and more expendable cash. On the other hand, making payments can be beneficial if you wish to leave an inheritance for a family member.
You can also rest easy knowing that you are protected when you choose to work with us. In the past, equity release has had a negative stigma, but we have put safeguards in place to ensure that our later life customers are protected.
We are members of the Equity Release Council, which has product standards that provide additional consumer protection.
Another advantage of our equity release plan is that it can be a lifeline for interest only mortgage prisoners.
Many applicants in the 1990s and early 2000s may have taken out an interest only mortgage, but now find themselves unable to remortgage or access other options due to changing affordability checks.
With our equity release plan, you can pay off the final capital balance and take out a new mortgage, releasing the equity that has grown over time.
With a lifetime mortgage, you do not need to worry about a separate repayment vehicle, as the sale of your home will repay the balance either when you have died or moved into long-term care.
Additionally, with our no negative equity guarantee, you will not owe more than what you borrowed, providing peace of mind for you and your estate.
As with any mortgage, there are also downsides to equity release in Manchester. One major negative aspect is that allowing the interest to roll-up can gradually reduce the equity in your property.
This means that when it comes time to sell your property, whether after your passing or moving into long-term care, there will be a higher balance to repay, leaving little or nothing for inheritance.
For many, leaving an inheritance is important, and this may be a deal-breaker for them. You may have the option to ring-fence a portion of your equity initially, although there may not be much left after this.
Moreover, as previously mentioned, it’s not always certain that you will pass away before your property is sold. You may need to move into long-term care, and if there is enough equity in your property and you have made interest payments, your care costs may be covered.
Unfortunately, if the interest has rolled-up and there are not enough funds from the property sale, it may not cover the costs of your required care.
Determining whether equity release in Manchester is the right option for you depends on your personal circumstances and goals. Unlike traditional mortgage lending, equity release can only be obtained through a later life mortgage broker in Manchester, after receiving equity release advice.
This is because while equity release can be a great option for some, it may not be suitable for everyone and can end up being a costly mistake. With the help of a later life mortgage advisor, your lifetime mortgage will be customised to your specific needs and plans.
Equity release in Manchester and lifetime mortgages are highly adaptable and can be tailored to meet your goals. Your mortgage advisor will also consider alternatives, such as conventional or unsecured lending, before discussing equity release as an option.
To determine which option, equity release or an alternative, is more suitable for you and your future plans, seeking expert equity release advice in Manchester from a qualified and professional later life mortgage advisor is recommended.
By examining your current situation, the advisor can provide the best possible guidance on how to proceed.
Taking out equity release advice in Manchester can help you avoid future pitfalls, as your later life mortgage advisor can plan around future decisions, such as ring-fencing inheritance, as previously discussed.
In addition, equity release advice in Manchester can be beneficial for younger borrowers. A later life mortgage advisor can examine holistic or phased entry into later life lending, and offer over 50’s mortgages.
These can include term interest only, retirement interest only, or other conventional mortgage options, for those who may not meet the age requirement for equity release in Manchester or are better suited for an alternative.
Your later life mortgage advisor prioritises your needs and will recommend the best option for achieving your goals while ensuring that you are secure and protected in the later stages of your life.
To understand the features and risks, ask for a personalised illustration.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.
Have you ever found yourself in the frustrating situation of booking a seemingly affordable flight online, only to encounter a maze of complications and unexpected costs when attempting to make a simple change to your reservation? What should have been a straightforward process turns into a time-consuming ordeal, casting a shadow over what was supposed to be an enjoyable experience.
Such instances exemplify poor customer service, causing unnecessary stress and diminishing the joy of your travel plans. What was initially meant to be a delightful adventure becomes tainted by the challenges stemming from your initial negative encounter. Fortunately, there is an alternative – turning to a travel agent can alleviate the complexities of the booking process, offering a smoother and more enjoyable experience.
Similar challenges and anxieties often surface in the realm of mortgages. Much like the relief provided by a travel agent, a dedicated and diligent mortgage broker in Manchester can step in to shoulder the burden, making the entire mortgage process more manageable and less stressful for you.
Without a doubt, buying a new home is one of the biggest financial commitments you’ll ever make in your life. With this in mind, utilising the experience and industry knowledge of a trusted mortgage advisor in Manchester will save you from many of the problems present with either going direct or trying to go it alone, without anyone to back you up.
Usually, the fixed rate that you might see advertised on tv or the internet, is not the final rate. As with all advertising, it’s there to get your attention and make you want to see more. Generally speaking, these deals are aimed at customers with lots of equity, perfect credit ratings, employed, and a brilliant track history of paying. There will almost always be a more attractive deal out there, but that doesn’t mean that’s the best for you personally or financially.
You must also bear in mind that when going with this specific lender, you only have access to their products and their heavily biased advisors. Others to be careful with are estate agents and price comparison sites, wherein the latter only displays the deals these high street banks want you to see, whilst the estate agents are incredibly biased and pushy, known to break the law in order to make money from you. You can read more about the sales tactics of estate agents in our article on the topic.
As an open & honest mortgage broker in Manchester, we only ever have your best interests at heart. We are able to offer a wide range of products from different, sometimes more niche lenders, depending on what it is you’re looking to achieve. These deals are often better than the lenders direct deals and also aren’t available going direct either. As well as this, our loyal team of advisors will never try and force anything on you that you don’t want, working purely to support your needs from start to finish.
Getting in touch with a Mortgage Broker in Manchester will allow you to further explore your options and your recommendation will be personal to you and your situation. Also, features such as a fixed rate of interest, offset options or variable rates for flexibility, may be recommended for you.
All products and deals have their own specific rules and criteria. It’s our job to know this criteria inside and out, which is why we will work hard to make sure you’re on the best or at the very least most appropriate path for your personal situation.
If we’ve done our job right, and we have a good track record of doing just that (see our Customer Reviews for testimonials by real customers!), you’ll walk away with a deal that allows you to borrow the amount you’d like, with reasonable interest rates and hopefully having saved both time and money.
We have a long history of helping anyone from first time Buyers in Manchester, to those looking to remortgage in Manchester and even those who require self employed Mortgage Advice. If you would like to take advantage of our free initial mortgage consultation and speak with a mortgage advisor in Manchester, please get in touch and we’ll see how we can help.
Mortgage Protection Insurance is an umbrella term used to explain different kinds of cover available to customers who have taken out a mortgage. This cover got designed to reduce financial concerns for both you and your loved ones, in the event of any unforeseen circumstances that may occur whilst the mortgage process is active.
Here Malcolm has recorded a video to speak to you about the importance of having the correct insurance in place for your situation.
The central message here is due to the coronavirus pandemic; the importance of health and getting insurance is now greater than ever. There are differences in insurance to choose from when it comes to safeguarding you and your family.
Here at Manchestermoneyman, we will be able to compare lots of providers to help find you the best policy for your circumstances. The following insurance policies that we can offer to you are:
For further clarification, get in touch and speak with one of our knowledgeable Mortgage and Protection Advisors in Manchester today. Our team will always be at the other end of the phone or email when you need to discuss.
Life insurance is an insurance policy that reduces the financial impact on your loved ones in the event you or another joint policyholder pass away. Our Mortgage Advisors in Manchester can run through all the different types of Life cover accessible to you and advise the most suitable plan for you.
Critical illness cover is an insurance policy that covers serious illnesses detailed within a policy. Usually, these will include Stroke, heart attack, certain types and stages of cancer, and more. However, you are unlikely to be covered for pre-existing health issues you knew you had before taking out the insurance. As mentioned, the specific illnesses covered and not covered will be detailed in your policy.
The most significant thing is that the benefit gets paid if you fall victim to one of several specified critical illnesses and pays out whatever the long-term prognosis of that illness. The type of conditions covered vary from company to company; that’s why this type of insurance cannot be solely price-driven, and seeking Specialist Mortgage Advice in Manchester is recommended.
In practice many businesses will offer Life and Critical Illness Critical cover as a combined policy and would usually payout on the “first event,” namely whatever happens first – either death or a severe illness – the payout is made. They could also get written on a single or joint life basis.
Whereas Life and Critical Illness cover pay out a lump sum, Income Protection pays out a monthly sum intended to replace your wages in the event of you being unfit to work. In contrast to the Critical Illness cover, there are no limitations on the illnesses or injuries covered, the only factor being whether they make you unfit to work.
There are, however, restrictions on how much you can cover and how quickly benefits would start to get paid. Such As Life and Critical Illness cover, these policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies get written on a single life basis.
You can also combine Life Insurance, Critical Insurance, and Income Protection, into what’s called a menu plan. The providers do give you a discount each time you add a benefit in, and that can be a cost-effective way of taking cover.
With a Menu Plan, you can mix and match a range of cover and benefits to tailor a plan that suits your needs and budgets. We strongly advise all our customers should the worst happen, least you have covered yourself and your family, to find out more speak to one of our mortgage Advisors in Manchester today.
The least common of the mortgage protection policies but can often be useful – especially for those with young households. These plans can get taken to Life and/or Critical Illness Cover, and get underwritten on the application in the same way.
However, in contrast to the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Consequently, it can replace the payment of the primary worker for several years, dependent upon a particular client’s circumstances and, because of this would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.
Many people have one or more of the different types of policy, and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. However, affordability plays a massive part, whilst it would be fantastic to cover yourself for every potential opportunity.
Our Mortgage Advisors in Manchester are here to discuss with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget. To find out more, give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists Advisors in Manchester today.
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Manchestermoneyman.com & Manchestermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Manchester, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Manchestermoneyman.com & Manchestermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Manchester, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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