Finding the right mortgage later in life

Life does not always follow the old pattern of buying your first home in your twenties and retiring in your fifties. Many people buy later in life and may still be paying off a mortgage well into their later years. 

There are flexible mortgage options to help you plan for life, retirement, and your family. 

Why your needs may be different later in life? 

As we get older, our financial picture can change. 

• Your income may come from pensions, savings, or investments instead of work. 

• You want monthly payments you can manage easily. 

• You would like to enjoy your home now while leaving something for your family. 

• You are thinking about future care needs. 

• You want a long-term fixed rate, so rising interest rates aren’t a worry. 

How we can help you? 

Retirement Interest-Only (RIO) mortgages 

With a RIO mortgage, you only pay the interest each month, keeping payments lower. The loan is usually repaid when you sell your home, move into care, or pass away. No repayment plan is required. 

Standard residential mortgages with longer terms 

You can take out a full repayment mortgage well into later life. If you prefer, interest-only options are also available, if you have a repayment plan in place. 

There is no maximum age when you apply or when the mortgage ends. Terms can be up to 40 years (subject to your income). 

These mortgages can stay with your home and even be passed on to your beneficiaries, giving you flexibility and peace of mind. 

Downsizing or moving home 

Selling a larger house and moving to a smaller one can free up cash and reduce your living costs, helping you keep your finances more flexible. 

Things to think about… 

If you are thinking about mortgage options later in life, it can help to: 

• Make sure your payments are comfortable for your budget. 

• Talk with your family so everyone understands your plans. 

• Be confident you know how your mortgage works and what it means for your future. 

At Perenna, we believe your mortgage should give you both stability and flexibility. 

Many people have a home that is full of value but do not have as much cash to spend day-to-day. The right mortgage can help you make the most of your home’s value, so you can enjoy life now while still planning for the future. 

You could lose your home if you don’t keep up your mortgage repayments.   

Adapted from an article written by Janet Frame, Business Development Manager at Perenna. Correct at time of publishing.