How Later Life Lending Can Help You Retire Better

How Later Life Lending Can Help You Retire Better

Having enough money for retirement can be very important. When you’re trying to achieve your dream retirement, later life lending can be a light of hope. This detailed guide explains what later life lending is, its benefits, and how it can help you manage your properties – giving a clear path for people who want to improve their retirement.

At Hansford Bell, our team of money experts are here to listen to you, make plans, and help your money grow. Whether you want to save for later or need advice now, our job is to make money matters simple and work together on your goals. Want to improve your money plan? Contact us for a free consultation.

Want to improve your money plan? Contact us for a free consultation.

Understanding Later Life Lending

There are two main kinds of later-life lending: lifetime mortgages and home reversion plans.

Lifetime mortgages involve taking out a loan based on how much your home is worth. You don’t have to repay this loan until your home is sold, usually when the person who took out the loan either passes away or moves into care. The interest on the loan adds up over time until it needs to be paid back.

Home reversion plans are different. They let you sell some or all of your home for a big or smaller regular payment. The best part? You can still live in your home without paying rent for the rest of your life.

What are the Requirements for Later Life Lending?

Later life lending is usually for people who own a home and are older than 55. However, what you need to get these loans can differ depending on the loan type and who is giving the loan. How much money you can borrow depends on things like how old you are, how much your house is worth, and the loan rules. Understanding all these rules well is essential to pick the loan that fits you best.

How Later Life Lending Helps with Retirement Planning

Later life lending can change how you plan for retirement, making it easier to handle money when needed. Here are the top three benefits it can provide:

  1. Adding to your income and paying bills. A big plus of later-life lending is that it can give you extra money. This can add to your pension, pay medical bills, or even allow you to go on a dream vacation. This additional money means you can live comfortably without using up your savings or other money you have invested too quickly.Find out how pension rules are changing in 2024 >
  2. Paying off debts for more financial freedom. Many retired people still have to pay off debts while paying for everyday things. Later life lending can bring these debts together into one easier-to-manage payment. This can lower how much you pay monthly and make handling your money less stressful.
  3. Helping with early inheritance and gifts for family. Retirees can use the value of their homes to give early inheritance or gifts to their family members. This is great for those who want to help their loved ones now, like buying a house, paying for school, or helping them out during tough times.

Using Later Life Lending to Improve Property Investments

For retirees who own more than one property, later-life lending can be beneficial in increasing the value and usefulness of these investments.

Access Your Cash Without Selling Your Property

Later-life lending lets property owners use the value of their properties to get money without having to sell them. This is a smart way to keep and grow your property collection. It’s perfect for those who want their properties to increase in value over time.

Spreading Your Investments to Lower Risk

The money you get from later-life lending can be used to invest in different things. This way, you’re not putting all your eggs in one basket, which can make your money safer and might even make you more money in the long run. This helps protect your savings from big ups and downs in the market.

Find out how much you should have in your savings >

Planning Taxes and Helping with Inheritance

Later life lending can help with planning how much you pay, especially taxes your family might have to pay after you’re gone. By using the value of your home now, you might lower the total value of what you leave behind, which can mean less tax. At the same time, you can give money to your family when they need it.

What are the Challenges of Later Life Lending?

Later life lending has many benefits, but it’s essential to know about the possible downsides and risks.

A big thing to think about is how this lending might reduce the value of what you can leave for your family. When you use later-life lending, your home will have less value to give to your heirs, which might change their financial future.

The interest can grow with lifetime mortgages if you’re not paying any instalments for it. This means the amount you owe could increase by the time you need to pay it back. It’s essential to plan how you will repay this so it fits with your overall money plans.

Retire Better with Later Life Lending from Hansford Bell

Later life lending is a beneficial tool when planning for retirement. Retired people can get essential funds by using the value of their homes. These funds can improve life, help pay bills, and even help family members. But it’s imperative to think about both the good sides and the possible risks.

At Hansford Bell, we’re here to guide you every step of the way. With our help, you can feel confident about your money. We understand your needs and offer advice that fits just right.

Remember, you’re not alone in planning for your future. Don’t hesitate to contact us if you have questions or want to start making your money work better. Together, we can make your financial dreams come true.

Creating a financial life plan can help all aspects of your finances – find out more >

Learn why it’s never too early for estate planning >

A Fresh Approach to Financial Planning and Advice.

Hansford Bell aren’t your average team of financial specialists. We take the time to get to know our clients and help them realise what they want from their life, whether that’s a personal ambition or a financial goal.

Our planners are highly experienced and know the industry inside-out. We combine simplified, straight-forward tips and guidance with cutting-edge technology and a comprehensive understanding of your situation. We focus on your finances, so you can focus on living your life.

Want to know more? Talk to us today and we can start making that dream future a reality!