Starter Learning Zone: Quick Quiz To Test Your Current Knowledge
We have created a quiz about Later Life Lending so you can see how much you already know.
It may be that you are a Later Life Lending genius and score 100% straight away, it is more likely that you will know some of the answers and not have a clue with others. This is what we expect to happen.
You can then identify which sections within our Learning Zone to focus your learning on.
Starter Learning Zone: Lending Questions Answered
In this section we demonstrate the methods you can use for your learning: Video, Audio, Factsheets or Advisor Discussion.
We have examples of each for you to Watch, Listen to, Read or Contact.
How Much Can I Borrow?
There are different answers to this questions depending on your needs.
If you wish to pay the interest on your loan each month, pay the interest and some of the capital back each month, or you prefer a more flexible type of mortgage.
Blog: Our Interesting Articles
In this section, we have produced articles for you about the most interesting, newsworthy or new aspects of Later Life Lending that we think you will want to know more information about.
Starter Learning Zone: The three main three types of lending available to Homeowners over 50
There are three main different types of lending for over 50s to consider. Two of these are alternatives to Equity Release, however these are affordability checked, credit scored and require a monthly payment to be paid.
Equity Release is the third option and is explained in further details below. We have created information via Videos, Audio and Factsheets to enable you to learn in the manner you prefer.
We have added much more information on our free to open learning account. The Learning Account has been designed to store your learning and answer your questions. Open a learning account today.
Residential Mortgages For Over 50s
The range of Residential Mortgages available for over 50s is far greater than five
years ago. Lenders have realised that an alternative to Equity Release or
selling the property was needed.
Over the last 25 years, many people have taken out Interest Only mortgages, a
huge number of which are coming to the end of the 25 year term in the next few
years.
Retirement Interest Only (RIO)
This type of Mortgage was introduced in March 2018 as the Financial Conduct Authority (FCA) sought to mitigate the effects of so many Interest Only mortgages coming to an end from 2018 onwards.
This problem has persisted ever since. In fact, the later data from UK finance shows that over 700,000 interest only mortgages exisited at the end of 2022. This figure represents a significant problem for many of those homeowners.
Equity Release
This is the third type of mainstream Residential lending and should be considered as well as the Residential lending for over 50s and Retirement Interest Only mortgages (RiOs).
Applicants for this type of mortgage need to be aged over 55 and own their own home. Equity Release lenders will consider lending a certain amount of your property value based on the age of the youngest borrower.
Starter Learning Zone: STOP PRESS
In 2024, the first lenders launched hybrid Equity Release products that sit somewhere between the Residential Interest Only Mortgage and the Retirement Interest Only Mortgage in its early years. When certain life events take place (eg. retirement of one partner), the Mortgage would then turn into a Lifetime Mortgage.
It is widely expected that many lenders will follow suit and launch this type of product. The increased flexibility they offer will allow consumers to borrow a higher percentage of their property value.