Whatever your circumstances we can help!

At AGA Mortgages, we are well-positioned to offer tailored advice and arrange mortgages for older clients who may need to borrow money. We provide a range of long-term options designed for individuals over the age of 55, typically aimed at those at or beyond state retirement age. The types of products we advise on include:

1. Retirement Interest Only Mortgages
2. Lifetime mortgages with mandatory payments
3. Lifetime mortgages with voluntary payments where the interest is rolled up

These mortgage options can provide a lump sum or a regular income to help support your financial needs. Before recommending any later life lending solutions, we will thoroughly explore all available options and assess any benefits or grants you might be entitled to that could reduce the need for borrowing.

We understand that “equity release” has faced negative publicity in the past, but the industry has evolved significantly. The lifetime mortgages we advise on are approved by the Equity Release Council, ensuring high standards for both products and advice. Our mortgage network, Mortgage Intelligence, is a proud member of this council, upholding these strict standards.

Dispelling Common Myths About Lifetime Mortgages:

“I won’t own my home anymore” – Incorrect! A lifetime mortgage does not mean you are selling your home to the lender. It is simply a loan secured against your home, repaid when the last borrower either passes away or moves into long-term care.

“A lifetime mortgage is a home reversion scheme” – False. A home reversion scheme involves selling part of your home to a provider, making them a co-owner. With a lifetime mortgage, you retain full ownership of your home.

“A lifetime mortgage will leave me in debt” - While there are initial costs such as application and solicitor fees, interest rates on lifetime mortgages are generally fixed. Many options allow you to pay off interest over time, though it’s not mandatory. If you choose not to make payments, the interest is added to the loan balance, repaid upon your passing or move to long-term care. There are products designed to fit various financial needs.

“My children will lose their inheritance” - Lifetime mortgages come with a “no negative equity guarantee” from the Equity Release Council, ensuring you and your estate will never owe more than the value of your home. Additionally, Inheritance Protection can be added to guarantee a portion of the home's sale proceeds for your beneficiaries.

Case Study 1

A husband and wife, both in their late 70s, own their primary residence valued at £600,000, which represents their main asset. They are in good health, enjoy living in their home, and are not interested in moving. Their daughter, however, needed financial assistance and they wished to provide her with a lump sum. With no other significant assets, they decided to release funds from their home. We arranged a lifetime mortgage of £50,000, enabling them to help her. Due to their tight monthly budget, they opted not to make interest payments, but their daughter agreed to cover these costs by making use of the 10% per annum overpayment facility on the mortgage. This kept the loan balance steady at £50,000.

If the daughter were unable to make the payments, it would not be an issue for the lender, as the interest could be added to the loan each month. The couple maintained full ownership of their home, while their daughter received the financial help she needed. The family also retained the flexibility to service the interest if they chose to, without any contractual obligation.

Case Study 2

A husband and wife in their late 70s were still managing a standard interest-only mortgage. Their current lender required repayment before the eldest borrower turned 80. While their income was nearly sufficient to cover the payments on a lifetime mortgage, we arranged a solution where they could service most of the interest each month. This approach kept the interest charged to a minimum. They also sought a lifetime mortgage without Early Repayment Charges, as they planned to downsize within a few years.

Fortunately, the market now offers lifetime mortgages with flexible terms, including no Early Repayment Charges, providing them with the financial security and flexibility they needed.

For more information and to discuss how later life lending might be a solution for you or your family, contact us today. We don’t charge for any initial consultation and will help explore all avenues available.

Additional Recommendations: We suggest ensuring your Will is up to date and that Lasting Powers of Attorney are in place. We also offer referral services for assistance with these matters.