SOLLA News and Views

11 October 2021

Views: Managing your interest only mortgage in later life

Managing your mortage in later life 2Many people will need to pay off their interest only mortgage over the next few years and some won’t have the savings to do so.

Lenders will inform you well in advance of your final mortgage payment date and may suggest some choices available to you. The most important thing is to give yourself time and get good independent advice to help explore the options you might have. This is well worth doing even if you’ve already got a plan in mind as there may well be options you’re not aware of, especially if you’re relying solely on options suggested by your lender.

SOLLA Ambassador Ray Boulger, one of the leading UK later life lending mortgage experts with John Charcol, says: “If your interest only mortgage is coming up soon for repayment, there are several things to consider. Some lenders may consider extending your mortgage term if you can satisfy them that you can afford to continue paying it, but even if your lender won’t extend the term a normal remortgage could still be an option as some lenders have more consumer-friendly criteria than others. A lifetime mortgage or a retirement interest only mortgage might be suitable for you too. Alternatively, you might decide to move and if so, you may or may not need a mortgage to help buy your new property.”

He adds: “There’s no one-size-fits-all so it’s important to get specialist advice from a trusted source to ensure you’re able take the route that is right for you.”

Get the right advice

There are various government-run websites, such as Money Helper, providing impartial information across a range of finance-related topics, including interest only mortgages: www.moneyhelper.org.uk/en

Speaking to an expert adviser will help you understand more about your current situation and learn what options are available to you. Crucially, you’ll also be able to discuss which one is best suited to your individual circumstances.

SOLLA Accredited Financial Advisers are true specialists when it comes to later life financial advice, undertaking assessment of their technical knowledge and communication skills. Those holding the Later Life Lending Advice Standard (LLLAS), are experts in later life lending advice, including equity release.

To find your nearest Financial Adviser with the SOLLA LLLAS and get help for your equity release needs, please go to: https://laterlifelendingstandard.co.uk/Find-an-adviser