A lifetime mortgage in York allows homeowners aged 55 and over to release equity from their property while continuing to live in it.

The amount you can borrow depends on factors such as your age, property value, and whether you choose to make repayments.

This type of mortgage is often used for home improvements, supplementing retirement income, or helping family members financially.

How It’s Calculated

Age 65 – 30 = 35% Lifetime Mortgage in York (This is Approximate and Can Be Used to Buy a New Home or Release Equity)

The amount you can borrow is typically calculated as your age minus 30 as a percentage of your property’s value.

For example, if you are 65, you may be able to borrow approximately 35 percent of your home’s value without needing to make monthly repayments.

If you can afford to make monthly interest payments, you may be eligible to borrow more.

This is known as an interest-only lifetime mortgage in York and can help slow down or prevent interest from rolling up over time.

The exact amount available will depend on your personal circumstances and the lender’s criteria.

What can a lifetime mortgage be used for?

The money released through a lifetime mortgage in York can be used for various purposes.

Many homeowners use it for home improvements, purchasing a new car or motorhome, or even as a way to support family members financially.

Others may choose to supplement their pension with regular withdrawals. A lifetime mortgage is a long-term financial commitment.

If you are looking for short-term borrowing solutions, there may be more suitable options available, such as bridging loans in York, which can help with downsizing or property purchases.

The Importance of Mortgage Advice For Those Over 55

If you are over 55 and exploring lifetime mortgage options, it is always worth speaking with a specialist over 50s mortgage broker in York.

They can assess whether this is the right option or if alternative products, such as retirement interest-only mortgages, may be more suitable.

A lifetime mortgage in York should generally be considered a last resort. Exploring traditional mortgage options first can help ensure you are making the best financial decision for your future.

If you can afford to contribute towards interest payments, even partially or for a few years, it can significantly reduce the overall cost of borrowing.

Since lifetime mortgage interest rolls up, unpaid interest is added to the loan balance over time, leading to further interest being charged on the growing debt.

Making small payments where possible can help prevent this from increasing too quickly, preserving more of your property’s value for the future.

Date Last Edited: February 7, 2025