Re-financing options for the over 55s

North Devon Gazette

Lifetime mortgages, otherwise known as equity release, can be used in several ways and The Mortgage Hub in Barnstaple is able to advise you on the many options available.

The mortgage can support your income in retirement, pay for a holiday, carry out home improvements, pay off an interest-only mortgage, or make a gift to your children or anyone else. Should your estate be facing an inheritance tax bill it can help with this too.

If you are one of the thousands of people that have personal loans, overdrafts, credit cards or store cards and are finding them hard to manage, then a lifetime mortgage may be of interest to you.

When it comes to borrowing, bank overdrafts are usually the worst, charging around 21 per cent interest, per annum, followed closely by credit cards at around 20 per cent, while personal loans average at around eight per cent.

When these rates are compared against some of the lowest lifetime mortgage rates at 2.4 per cent, fixed for life, then it is easy to see the appeal of the lifetime mortgage.

With a lifetime mortgage, it is possible to pay the interest or let it roll up on your mortgage, to be repaid on the last surviving spouse going into long-term care or on passing.

If you have access to regular finances to pay off your unsecured borrowing quickly, this option may not be for you.

If however you struggle to keep up with the interest payments only on unsecured borrowing and there is little chance of you repaying the debt, then a lifetime mortgage could be perfect for you.

Before helping you make an informed decision, the team at The Mortgage Hub in Boutport Street can offer a full comprehensive review of your circumstances completely free.Â

From the age of 55, it is possible to raise money on property - this can be your main residence or on a 'buy to let' that you may own.

With a 'buy to let', it may prudent to raise capital on it rather than sell it and incur any capital gains tax on the sale.

As independent local brokers, The Mortgage Hub, has more than 12 lenders in this market, all with around 50 offers with varying rates, deals and criteria.

For a no-obligation chat about a new or existing lifetime mortgage, call 01271 379 444 or email or go to

Alternatively, visit the office in Boutport Street, next to Barnstaple Cinema. Alternatively, home visits can be arranged.