It can be tough to get a mortgage when you’re older, but there’s some good news! Pepper Money, a lender that specialises in second charge mortgages, has made things a bit easier for folks who are retired or planning to work longer.
What’s a Second Charge Mortgage?
A second charge mortgage is like a loan that you take out on your home, but it’s not your main mortgage. Think of it as an extra loan on top of your existing mortgage. These loans can be helpful for a variety of reasons, like home improvements, debt consolidation, or just some extra cash.
Changes That Make a Difference
Pepper Money has made two big changes to their rules:
- Higher Age Limit for Income: You can now be up to 75 years old and still be accepted for a second charge mortgage based on your earned income. This is great news if you’re still working and want to use your income to qualify for a loan.
- Longer Loan Terms: You can now have a loan that lasts until you’re 80 years old. This gives you more flexibility to spread out your repayments, especially if you’re relying on retirement income.
Why This Matters
These changes mean that more older people can access second charge mortgages. Ryan McGrath, from Pepper Money, explained that they’re doing this because they know that many people are working longer and need access to loans. They also know that some retirees have income that can be used to repay loans.
What This Means For You
If you’re approaching retirement or already retired and need a loan, a second charge mortgage could be an option for you. It’s important to remember that you’ll need to meet the lender’s requirements, and it’s always a good idea to speak to an independent financial advisor to make sure a second charge mortgage is the right choice for your situation.