Call us: 0345 305 2540

How To Avoid Paying Your Mortgage Into Retirement

MORTGAGES | 05.02.2019

Around three million homeowners expect to still be paying back their home loans into retirement, with lenders responding by increasing the number of mortgages available for older borrowers.

One in five (21%) of mortgage holders worry that they’ll still be paying their mortgage off into retirement.

More than half (58%) don’t know how they’ll keep up with repayments when they’re no longer working and 53% of those are already over the age of 55, making it difficult to prepare in advance.

If you’d like to avoid having to keep paying your mortgage into retirement, here are a few things to think about.

Remortgaging

Remortgaging your property can have a number of financial benefits, particularly for those who wish to become mortgage debt-free before they retire.

You may choose to remortgage to a deal with a shorter term, meaning you’ll pay off your debt sooner than originally intended. This is likely to see your monthly repayments increase and could incur fees, but a mortgage broker will be able to help you determine whether it’s a financially viable and cost effective solution.

Overpaying

If you’d like to increase the amount of money you’re paying towards your mortgage but you don’t want the formality and commitment that comes with remortgaging, making overpayments can be much more flexible. Whether you’d like to use savings, an inheritance or a bonus to pay off a lump sum, or make regular overpayments just after payday, overpaying on your mortgage can allow you to become debt-free much quicker than anticipated.

Not only can overpayments relieve you of the pressure to pay your mortgage in retirement, it can save you thousands of pounds in interest too.

Equity release

If your home’s value has risen significantly since you first purchased it, it may be possible to venture down the equity release route. You’ll be able to free up some of the capital you have invested in the home in order to pay off the remainder of your mortgage.

If you’re unsure which route is right for you, please get in touch with the team at TaylorMade today. We’ll assess your finances before advising you on the most suitable option for you.

Talk to us

If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.

0345 305 2540 info@taylormade-finance.co.uk

By clicking on the above link you will be leaving the regulated site of TaylorMade Finance Ltd. TaylorMade Finance Ltd is not responsible for the accuracy of the information contained within the linked site.

Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: http://financial-ombudsman.org.uk

Your mortgage will be secured against your property.

Your home may be repossessed if you do not keep up repayments on your mortgage.

For mortgages we can be paid by commission, or a fee of usually 1% of the loan amount.

TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.

The Financial Conduct Authority does not regulate Will Writing and some aspects of estate planning. Buy-to-Let Mortgages and Secured Loans.

The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.