I am 65 but have a wife who is only 53, are there any equity release schemes available to people younger than 55?
This will depend on what you want and can afford. Specialist equity release schemes where you do not make an monthly repayments, such as roll up lifetime mortgages or home reversion plans are only available where the younger partner is aged 55 and between 63-65 for home reversion plans. However, if you can afford to make monthly repayments not only now, but once you and your wife reaches retirement, you may be able to release some equity by doing an ordinary mortgage but you need to remember that your home is at risk if you do not keep up any repayments.
An interest only lifetime mortgage will still give you the right to remain living in your home for the rest of your lives providing you keep up repayments. The amount you can borrow will normally be determined by how much your post retirement income will be with lenders applying either a multiplication of your joint projected retirement income or on affordability.
One problem with such mortgages are that most lenders will expect the mortgage to finish by the time you reach 75 or 80. Therefore if you do a repayment mortgage, due to the short term, the monthly repayments could be too expensive for you, or if you did an interest only mortgage, either you would have to downsize or look towards an equity release scheme to release enough to pay back the mortgage lender at that time and/or possibly provide you with some additional money. However, you should remember that future availability of equity release schemes cannot be guaranteed, nor can house prices, so depending on how much you might borrow on an interest only mortgage, it may be impossible to obtain sufficient money from an equity release scheme to repay the mortgage when the lender request it.
Advice on interest only lifetime mortgages.
Unlike some other equity release advisers who may only offer roll up lifetime mortgages and home reversion plans, The Equity Release Centre also offers impartial advice on interest only mortgages. So no matter your age we are able to help. If you would like to speak to someone about interest only mortgages, simply complete our short online enquiry form and we will call you back, or call us on FREEPHONE 0800 972 4883 please call us.