If you have reached the age where you can retire or you are planning for your retirement, it is crucial to think about what mortgage platform can be right for you. Mortgages for pensioners have specific advantages among some of which include the following:-
Added choice: The Council of Mortgage Lenders, the trade association for mortgages in the UK found that at the start of 2012, there were more than 25,000 remortgage loans being taken out. Remortgages are one type of mortgage that pensioners can choose because they give people more choice over how to use cash raised from the mortgage deal. This is ideal if pensioners are looking for ways to increase cash in their financial portfolios, or if pensioners want to help to create some sort of liquidity for their family members.
Repayment clause: The golden question you should be asking yourself is does the mortgage lender want repayment? Pensioners need to look for good deals on repayment or even some mortgage deals do not have repayment included in them, in which case this is something to seek out with the help of a financial adviser.
Income: The good thing about mortgages for pensioners is the perceived value that added income gives people. In these tough economic times, it is no surprise that pensioners want to have reliable income streams and a mortgage for a pensioner can give him or her that. The most important thing to remember is how much money you are after when you are trying to figure out which pensioner mortgage is right for you.
Conducting your Research: The Info to Track
When starting your research into the available schemes and pensioner mortgages, it is important to consider whether your circumstances and your health will allow you to see the mortgage through. If you are in good shape and your doctor even recommends that your health is good, you should consider a pensioner mortgage which can run well into retirement because it can fit into your lifestyle.
Another important thing to remember about these types of mortgages is that lenders want to look good to you as a pensioner which is why you should ask as many questions as possible about your mortgage. Shop around for the best equity release deal to avoid any disappointment.
Alternatives to Mortgages
This article has mainly focused on the ability to gain a mortgage in order to provide you with money for your retirement. You have so many different options that it would be remiss of this article not to mention home reversion.
Home reversion is totally different than the other financial products mentioned because it is not a mortgage at all. Rather this option provides you with an advantage to no repayment. You never pay back the money you receive under this product option. The reason - you have just sold a portion of your home. The thing about lifetime mortgage products in discussion here is that most people have to sell their home at death or move to a care facility because all other money has been used.
With home reversion you sell your home, gain equity, and your family has nothing to worry about in terms of payments. Rather they are rewarded with a portion of the home in cash that is their inheritance, providing you did not sell the majority of your home and the house did not devalue as you aged.
The reason many individuals do not like this option is the simple fact that you sell your home while you still live in it. For some this takes away control. If this is not reasonable to you, then you certainly have plenty of mortgages to consider as a pensioner. With no payments, minimum payments, and even a chance to repay the mortgages before death there is no reason not to look at the different advantages and disadvantages of the myriad of products available to you on the market.
Always keep your family apprised of what you have decided with your home too. Your family is going to face the changes you have made in your life, so knowing about it beforehand can help prepare them to the loss of the family home.
Companies in this field tend to be the specialist lifetime mortgage lenders such as EquityReleaseSupermarket.com, who have a nationwide team of advisers and can be contacted on 0800 678 5159. Why not give them a call today and find out which pensioner mortgage companies and mortgages for pensioners deals are currently available.
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