Oh Dear: Could a retirement mortgage help you stay in YOUR home

[milanbenes]

Oh Dear,

this uhh, doesn't look good,

Could a retirement mortgage help you stay in YOUR home? | Daily Mail Online

Good luck anybody in that situation.

But why did they even put themselves in that situation - greed .

Milan.

[doconline]

Oh Dear,

this uhh, doesn't look good,

Could a retirement mortgage help you stay in YOUR home? | Daily Mail Online

Good luck anybody in that situation.

But why did they even put themselves in that situation - greed .

Milan.

Looks like it could be used like a variation on equity release? Probably not the intention as I only had a skim read of the article. If that is the case though it's certainly something I'd look into. As my wife and I don't have kids we'll be using all assets to help fund our retirement (as soon as possible), with anything left over going to charity. So if this is cheaper than equity release, we'd use it.

[NotAllThere]

De rigueur where I live. But the loan can be multi-generational. I have a loan of about 25% of the value of the house. Interest only.

Looks like it could be used like a variation on equity release? Probably not the intention as I only had a skim read of the article. If that is the case though it's certainly something I'd look into. As my wife and I don't have kids we'll be using all assets to help fund our retirement (as soon as possible), with anything left over going to charity. So if this is cheaper than equity release, we'd use it.

It'll be more expensive, since with equity release you don't make any repayments - the interest is added to the loan.

[tazdevil]

I'm in the same position as Milan so anything left goes to the sally army and the dogs home. Therefore we could buy our ideal home cash and then mortgage it to get a wad to spend on cruising

[milanbenes]

De rigueur where I live. But the loan can be multi-generational. I have a loan of about 25% of the value of the house. Interest only.



It'll be more expensive, since with equity release you don't make any repayments - the interest is added to the loan.

Hi NAT,

so what about the repayment of the capital ? |How does that work ?

Is the idea to put that amount into a higher earning vehicle and assuming the grand plan works enjoy the cream off the top at the end of the loan period ?

Bit risky for me.

Milan.

[Zigenare]

Hi NAT,

so what about the repayment of the capital ? |How does that work ?

Is the idea to put that amount into a higher earning vehicle and assuming the grand plan works enjoy the cream off the top at the end of the loan period ?

Bit risky for me.

Milan.

Buy Tulips!

[original PM]

well yeah and also it is aimed at people who are paying an interest only mortgage and expect to still have loads to pay when the mortgage finishes..

so aimed at muppets then really.

[tazdevil]

well yeah and also it is aimed at people who are paying an interest only mortgage and expect to still have loads to pay when the mortgage finishes..

so aimed at muppets then really.

And aimed at people who want a big cash injection from their expensive asset to avoid selling down but don't want to part with it whilst they're alive.

[Lockhouse]

If your house is large enough then just downsize.

We plan to downsize (relocate and buy something that needs less upkeep) next year, then if we're still kicking around at 75ish, downsize again to a retirement property.

The fly in the ointment is stamp duty but it's only really a problem for the first move. Cheaper than the loan costs and we'll have something to leave the kids.

[tazdevil]

If your house is large enough then just downsize.

We plan to downsize (relocate and buy something that needs less upkeep) next year, then if we're still kicking around at 75ish, downsize again to a retirement property.

The fly in the ointment is stamp duty but it's only really a problem for the first move. Cheaper than the loan costs and we'll have something to leave the kids.

But if you have the right size house in the right area and want to continue living there then this is a way to get a big cash injection to fund the last years of your life. It works if you don't have heirs or any need to leave a legacy