Later Life Lending
Later Life Lending is a relatively new term, encompassing the many different ways for the over 50's to raise capital from their homes. Equity Release, Home Reversion, Life Time Mortgages are some of the names you may be familiar with, but how about Retirement Interest Only or 'RIO' Mortgages?
Let’s first dispel the biggest myth around this type of borrowing – “You will lose your home”.
Pre-regulation, there were many stories of people losing their homes as their borrowing exceeded the value of their homes and loan companies looked to recoup the debt. In the 20 years until regulation started in 1991, Equity Release Lenders pretty much set their own rules and this is where the poor reputation comes from. The industry has moved on a lot over the last 30 years though and, providing you go through a reputable broker who will place you with a mainstream Lender in this market, there should be no nasty surprises down the line nowadays.
In the early days, raising money against the equity in your home did not come with many choices whereas today, this is a growing market place and Lenders are looking to help it flourish. Terms such as Equity Release, Home Reversion, Lifetime Mortgage are starting to merge into one as the choice of providers and options expand - ‘Later Life Lending’.
If this sounds like an option that you'd like to explore, call us on 01522 540777 or fill out the form below.