My mortgage term is up in a few months; what are my options?

To add context to your question, you mean the entire term of your mortgage, not that you are coming out of your initial beneficial fixed-rate period and need a new fixed rate. You are a ‘mature’ borrower whose primary concern is that your home will be taken away from you.

This year, thousands of homeowners will struggle to get a traditional mortgage, which is an increasing concern. Many years ago, some borrowers decided to opt for interest-only mortgages, and their primary method of repaying this mortgage did not come to fruition. This means their term is ending, and they have little means to repay the capital.

When you get past your 50th birthday, the challenge is that many lenders are wary of lending into retirement, so they either reduce the loan term, which results in higher monthly payments or decline the mortgage altogether.

However, the big challenge is what to do when your mortgage is about to expire;

Getting a traditional mortgage may be difficult, and your income could be lower due to retirement, for example.

The ideal scenario is that you have had time to plan, but many consumers don’t and deal with challenges when they arise.

The good news is that lenders will be sympathetic, and you won’t receive a possession order the day your mortgage expires. If you communicate effectively with your lender, you will buy time to find a solution. But what is the best solution;

• • Sell your home and downsize?

• • Ask family & friends to help?

• • Set up a Gofundme page?

• • Take out a personal loan

• • Come out of retirement and take on a new job so you are eligible for a traditional mortgage?

• • Take in lodgers to produce income

• • Look into grants and other State benefits available

• • Look into uncrystallised pensions

These are some of the options, albeit some are more hopeful than others!

We suggest you research all options, and a qualified ‘Later Life Lending expert’, such as us, will look at the above whilst giving other solutions such as Retirement Interest Only Mortgages and Lifetime mortgages targeted at this market. Your expert will also know traditional lenders who will allow later-life mortgage lending, but they will need to ensure there is a means to pay the monthly payment (pensions, State Benefits, investments etc).

As it happens, the above question was an older relative of mine, and I ensured they had the best solution possible to continue enjoying their family home.

This is why I love my job.