Home Mortgages Borrowing into retirement

Borrowing into retirement

Will you have a mortgage when you retire?

Your home may be repossessed if you do not keep up your payments

Paying your mortgage in later life

We’re all living longer and healthier lives, which is great news. But as you age, you could find yourself becoming less financially resilient, which could affect your ability to pay your mortgage.

Things to think about

  • do you have a labour-intensive job?
  • do you have more than one job – and will this change?
  • will your current hours be doable later in life?
  • will your pension income cover your lifestyle and mortgage?
  • could you afford the mortgage if the joint party passed away or couldn’t work?
  • do you have a plan for unforeseen ill health?

How to be mortgage free sooner

  • make overpayments to your mortgage
  • reduce your term
  • move to a smaller property.

Take a look at our overpayment calculator to see how overpaying could affect your current mortgage.

Your mortgage details

You can find these details on your most recent statement. If you have more than one Repayment Mortgage account, you’ll need to do separate calculations for each.

Your mortgage details

What you could save by overpaying

What could you save by overpaying

A monthly overpayment of
0
could save you
0
and reduce your term by
0
years
0
months over the term of your mortgage.

The benefits of overpaying

With overpayments

Monthly payment
£0
Total interest payable
£0

Without overpaying

Monthly payment
£0
Total interest payable
£0

How we calculate these savings

  • the calculator assumes your interest rate will stay the same for the term of your mortgage
  • we’ve evened out the months so they’re all the same length – 30.4 days each – so monthly interest will be consistent
  • repayments are rounded up or down to the nearest pound
  • we’ve rounded time saved down to the closest month
  • interest is calculated daily and added monthly
  • interest saved is rounded up or down to the nearest pound
  • the calculator assumes that the overpayments illustrated remain constant throughout the term of the mortgage and are made on a monthly basis – if overpayments are made on an adhoc basis, this will reduce the amount of interest paid but not the loan term
  • the calculator doesn’t factor in any charges for early repayments.

Please note – the information here is for illustrative purposes only and isn’t a precise calculation. The tool doesn’t include all of the details you need to either make an overpayment or choose a mortgage. Make sure you read the separate Mortgage Illustration before you choose a mortgage.

Think carefully before securing other debts against your home. Your home may be repossessed if you don’t keep up repayments on your mortgage.