Alan and Maureen took out an interest-only mortgage in their fifties when they downsized. The plan was simple: when the term ended, they’d clear the balance from investments that on paper, looked more than adequate.
A decade later, markets had a mind of their own. As their mortgage maturity letter arrived, the numbers no longer lined up. The shortfall was significant enough to make them nervous; not catastrophic, but enough to force difficult choices.
They didn’t want to sell the home they loved, or stretch their budget with a new monthly repayment plan in retirement. What they wanted was time, stability and a route that preserved the life they’d built. That’s when they called HFA Later Life for a straight conversation about the options.
How HFA Later Life Helped
We started with the full picture: the lender’s term end date, the remaining balance, the couple’s income mix of pensions and part-time work and their priorities. No monthly commitment and staying put. We also checked whether their existing lender offered any term extensions or product switches that could help. In their case, there was limited flexibility and the clock was ticking.
A Lifetime Mortgage became one of the options on the table. We explained how it works for some homeowners over 55: the balance is repaid when the plan ends (typically from the sale of the property), there are safeguards such as the right to remain in the home for life and there’s usually no mandatory monthly payment. We also covered the other side of the coin. How interest rolls up if you don’t make optional repayments, the effect on the value of the estate and how future plans (like moving) would need to be handled.
Alan and Maureen involved their son and daughter in the conversation. They ran the numbers with us, took independent legal advice as part of the process, and decided to proceed with a Lifetime Mortgage sized carefully to repay the interest-only balance plus the fees associated with switching. They chose to make small, voluntary payments each month to reduce the effect of compounding, with the flexibility to stop if their circumstances changed.
On completion day, there were no fireworks, just relief. The interest-only end date was no longer a cliff-edge; the home stayed theirs; their monthly budget remained intact. The plan gave them what they needed most: control.
If you have an interest-only mortgage approaching its end and your repayment plan no longer fits reality, you have options. The right path depends on your priorities, your income, your family’s views and your future plans. Our job is to lay out those paths clearly and help you choose with confidence.
Ready to talk through your term-end options?
Book a clear, no-pressure conversation with HFA Later Life at www.HFALaterLife.uk.
Important Notice:
Equity release includes Lifetime Mortgages and Home Reversion Schemes. We can advise and arrange Lifetime Mortgages and will refer to an approved specialist for Home Reversion schemes.
This is a Lifetime Mortgage. These are only applicable to those 55 and over, and it could affect eligibility to state means-tested benefits and the inheritance you may leave. To understand the features and risks, ask for a personalised illustration.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and will be agreed with you before proceeding, but we estimate it will be £1,500 payable at completion for equity release products.
