Frequently Asked Questions
1. Can I get a mortgage that continues into retirement?
Yes. Some lenders will consider mortgages that extend beyond your expected retirement age, provided you can demonstrate that the repayments will remain affordable from your expected retirement income.
2. Do I have to repay my mortgage before I retire?
No. Retirement does not automatically mean your mortgage has to be repaid. Depending on the lender and your circumstances, you may be able to continue your mortgage into retirement.
3. What income can be used to support a mortgage in retirement?
Depending on the lender, this could include State Pension, workplace or private pensions, investment income and certain other sustainable sources of income.
4. Can I remortgage if my current mortgage ends around retirement?
Potentially. Different lenders have different maximum ages and affordability criteria, so it can be worthwhile reviewing your options well before the mortgage term ends.
5. What if I have an interest-only mortgage?
This needs particular attention. The capital borrowed remains outstanding and must eventually be repaid. If your original repayment strategy is no longer sufficient, you should investigate your options as early as possible.
6. Is having debt in retirement always a bad thing?
No. The important question is whether the debt is affordable and sustainable. Some people may choose to retain manageable mortgage debt rather than use a large proportion of their pension or savings to repay it.
7. Can I use my property to help clear retirement debt?
Potentially. Options could include downsizing, conventional mortgage borrowing or, for eligible homeowners, equity release. The most appropriate option depends on your circumstances.
8. What is equity release?
Equity release allows eligible homeowners, typically aged 55 or over, to access some of the value tied up in their property without necessarily moving home. A lifetime mortgage is the most common form.
9. Will equity release affect my inheritance?
It can. The amount owed, including any interest that has accumulated, is normally repaid from the property when it is eventually sold. This can reduce the value of the estate available to beneficiaries.
10. Could releasing equity affect my benefits?
Yes. Releasing money from your property can potentially affect eligibility for certain means-tested benefits. This should be considered before proceeding.
11. Should I wait until retirement before reviewing my mortgage?
No. The earlier you review your position, the more options you may have. Ideally, start looking at your mortgage and retirement income several years before retirement.
12. What should I do if I am worried about my mortgage and retirement?
Don't ignore it. A review can establish how much you are likely to owe, what your expected retirement income will be and what options may be available.