Solving your monthly mortgage payment puzzle
BY READERS DIGEST
1st Jan 2015 Property
Traditionally, the aim is to own your home outright before you reach retirement. This way your income will be free to spend on the things you want, holidays, hobbies, home improvements and the grandkids perhaps? For many though this is not the case.
With endowment policies failing to make good on their promises, increased levels of remortgaging, longer lasting loans and with homes generally being purchased later in life, there is a wave of homeowners who are facing spending up to 47% of their fixed income each month on mortgage repayments when they reach retirement.
Some homeowners though have skirted the shackles of monthly mortgage payments in retirement by turning to the value in their property for financial freedom.
Using a Lifetime Mortgage, they were able to unlock a lump sum from the value of their home to clear their existing mortgage and eliminate the monthly payments that came with it. Now, their income is freed up to spend on the things that make a real difference to their retirement enjoyment whilst keeping full ownership of their property.
How much difference would a mortgage payment-free income make to your lifestyle?
With the recent increase in property prices, it can be possible not only to eliminate an existing mortgage but also to release extra funds for any reason, including to gift to family members.
The calculator below will tell you how much you could release. We'll send you our free guide that explains the finer details so please make sure your contact details are correct when using the calculator.
This is a Lifetime Mortgage and will reduce the value of your estate and can affect your entitlement to means-tested state benefits. To understand the features and risks, ask for a Personalised Illustration.
The Reader's Digest Equity Release Service is provided by Retiredom. Retiredom is a trading style of Responsible Life Limited which is authorised and regulated by the Financial Conduct Authority.
Only if your case completes will Responsible Life charge a fee for advice, currently £1,295.
