If you are aged 55 or over you may be considering releasing equity in your home either to raise capital or to provide additional income.
Some of our clients borrow in retirement so that they can continue to enjoy their chosen lifestyle. For others, borrowing can be a viable option if you are looking to adapt your home to make it more suitable for later life, to provide care fees or to gift sums to family for property purchase or for future IHT avoidance.
There are currently two ways of borrowing in retirement:
These schemes allow you to borrow an amount of capital based on your age and the value of your home. The debt is repaid when the last survivor (if a joint application) dies or moves permanently into residential care. There are schemes available where the rate is fixed for life, early repayment charges are fixed and are nil after a set number of years, and you (or your family) have the opportunity to make partial repayments in order to reduce the capital debt. Funds can also be raised to purchase a property.
Retirement Interest Only mortgages (RIO’s)
These mortgages are aimed at the over 55s and can be used for a new purchase or for a remortgage. The amount borrowed is based on affordability, usually taking into account pension income, benefit income and some other sources of income (not earned). This will determine how much can be borrowed. The term can stretch into retirement and up to age 99 years in some cases. Only the interest is repaid, meaning the capital will still become due at the end of the term.
Our experts are independent advisers for both of the above schemes. Equity release and Retirement Interest only arrangements are complex and it is essential that advice is taken to ensure they are fully understood. They should be treated as long-term commitments with little or no flexibility, so alternative options should also be considered.
If you would like to discuss your options, please get in touch for a no-obligation consultation at our expense.
I first met Anthony Kynaston some 13 years ago, when I sought advice regarding an inheritance from my late parents. He immediately impressed me with his friendly, calm, clear and professional manner, ascertaining my individual needs. Tony has since then continued to advise, plan and manage my financial affairs. This includes advice on my Buy to Let property and pension needs. He and his colleagues are always available to assist with any queries I may have. As a result, I can relax and now enjoy my retirement, leaving the complexities of financial management in their safe hands.
Ash-Ridge has been advising me for over 25 years. I have seen a very significant increase in the value of my portfolios over the years and have been very impressed by their professionalism, attention to detail, hands on management and care. I have been thoroughly pleased with the service so far.
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I have been working with Tony and Andrew at Ash-Ridge to manage my financial affairs for several turbulent years since 2007. They have supported me with a variety of significant decisions and administration relating to pensions and investments while dealing with ever-changing circumstances as I moved into retirement. I am very happy to work with them, and to recommend their services.
Ash-Ridge have been managing my personal pension investment portfolio for two years. I can say that I am absolutely delighted with the professional way they have handled my assets offering solid and independent advice which has been prudent and reliable. Dealing with an experienced team with first class communication and speed of response when advice is required. They are a pleasure to deal with.
Sophie and I just wanted to thank you again for all your help in remortgaging. As ever, the service was superb and efficient, we will of course be coming back!
We have been using Jane at Ash-Ridge for the last 10 years, which literally speaks volumes for the service we receive. Jane’s honest and straightforward approach is a key part in ensuring we get the deal that is best for us. She is swift and always keeps us updated throughout the entire process whilst allowing us sufficient time to make a final decision. Jane is a first class mortgage adviser and I would recommend her to anyone seeking mortgage or financial advice.