If you’re nearing retirement and still need a mortgage, there’s exciting news! Marsden Building Society has launched a brand new range of mortgages specifically designed for people over 55, called Lending into Retirement (LIR).
What are LIR Mortgages?
LIR mortgages are a helping hand for those who are still working but need a mortgage that extends into their retirement years. This means you can borrow money even if you’re planning to retire before the mortgage is fully paid off.
Who can apply?
You’re eligible for a LIR mortgage if you meet these criteria:
- Age: Between 55 and 70 years old at the time of application.
- Pension: You don’t need to be receiving a pension yet.
- Maximum Age: You must be 80 or younger at the end of the mortgage term.
- Income: You need a minimum income of £17,500 per year.
What types of income are accepted?
Marsden Building Society is flexible with your income, they’ll consider:
- Earned Income: Up to the age of 75. This means if you’re still working part-time or freelance, you can still qualify.
- Investment Income: Income from investments like stocks or shares.
- Rental Income: If you own property and rent it out.
Types of LIR Mortgages:
There are a few options to suit your needs:
- Repayment Mortgage: You pay off both the interest and the loan amount each month.
- Interest Only Mortgage: You pay off just the interest each month, with the loan amount due at the end of the term.
- Part-and-Part Mortgage: You can split your loan between interest only and repayment, letting you choose the best option for you.
Key Information:
- Loan-to-Value (LTV): You can borrow up to 60% of the value of your home.
- Minimum Loan Amount: £30,000
- Minimum Property Value: £150,000
What does this mean for you?
These LIR mortgages could be a great option if:
- You need to move home and are approaching retirement.
- You want to release some equity from your home to help with retirement costs.
- You need extra cash for home improvements or to pay off debts.
Expert Opinion:
Donna Barclay, Head of Credit at Marsden Building Society, said: “This new range is designed to give mortgage advisors and their clients aged 55+ more borrowing options. It could help people tap into more of their home’s value, providing a valuable financial cushion for retirement.”
Important Note:
Make sure you talk to a qualified financial advisor to discuss if a LIR mortgage is right for you. They can help you understand all the details and the risks involved.