With people living longer, working longer either in employed or self employed positions and leading more complex lives, there are many who require the option of continuing their mortgage past normal retirement age.

Many lenders have removed the need for the mortgage to be repaid by age 65 and instead apply longer or even indefinite periods where affordability is dependant on income which could be from various sources    including one or a combination of the following;

• Earned income
• Pension income
• Investment income
• Rental income from other properties

The lending could be on the main residence or even second properties where personal circumstances mean repaying the mortgage by normal retirement age is neither necessary nor prudent. Those who intend to repay the loan at some point from other investments may need to defer such a plan dependant on the value and performance of such investments at any given time. It may even be that the return on those investments is greater than the interest being charged.

There are others who, having repaid or reduced their mortgage significantly, may now wish to release additional money for capital expenditure which could be for them or their family. Providing affordability is established there are lenders who will allow this type of mortgage to be set up on an interest only basis for life with the loan only to be repaid on the second death. Whilst this type of loan does of course involve interest payments being made by the borrower there are other types of lifetime mortgages that involve no payments during the life of the borrower. These are explained more fully in another section of the site entitled:-

Equity Release