Where Can I Find Information on the Halifax Retirement Mortgage?

An endowment mortgage is a special type of interest only mortgage that is accompanied by an endowment policy which uses stock market investments as a means of repaying a mortgage. In recent years many consumers have found that their endowment policies are simply unable to repay the mortgage. These endowment shortfalls have led to mortgages into retirement.

It is possible to get mortgages which are specifically for retired individuals and these are often suitable where an endowment policy has failed to repay a mortgage. One such scheme is the Halifax retirement mortgage which is essentially the same as an interest only mortgage in that monthly contributions are made to cover any interest.

This is beneficial in that the balance owed does not grow unlike with an equity release scheme in which interest is essentially rolled into the outstanding amount owed and continues to grow.

As with all mortgages and equity release schemes it is important to fully research all options and ensure that you make the right decision for your needs. Do not allow the stress of an endowment policy shortfall to pressure you into making a poor decision about the way in which you release equity in your home to pay back the mortgage.

It is also advisable to take independent financial advice about your options. With the Retirement Mortgage you can also request a personalised financial illustration of how the mortgage will change over time. Remember that your twilight years should be the least stressful possible and therefore it is of the essence that you make the best choice at this stage.

If you are worried about endowment shortfalls leading into your retirement with a mortgage then it is a good time to review your policy right now. The only way to make certain you are not subject to difficult financial situations is to ask a financial advisor about your policy and see where others have failed. Endowment shortfalls have led to mortgages into retirement; however, you do not need to be one of the people that suffer from this if you protect yourself early enough.

Steps to Take
• Examine your situation as it is now. If you do not have an endowment with your mortgage yet, then consider both products: the mortgage with endowment and equity release scheme.
• If you have a few more years before retirement then you have a way to continue paying on your mortgage as it stands right now, limiting the amount of interest and principle that will be due later on.
• Also see if you can start to increase your mortgage payments on a monthly basis while you are still working.
• Equity release schemes are unavailable until you are 55 or older. With retirement age near 65, there are plenty of years for you to continue working to pay your current mortgage and reassess when you reach retirement.
• For those who have an endowment or are in retirement age, you will need to make some tough decisions. There is an answer in home reversion depending on your situation.

Basically you will want to examine your situation before you decide on a financial product. You also want to speak with an independent financial adviser who can review the products you are considering for a retirement mortgage. Working on your behalf it will be easier to accept the help the adviser provides rather than someone who might work for a mortgage facility such as Halifax.

You have an endowment option where you pay only the interest. You also have a lifetime mortgage that you can choose to pay interest on until your death or move to a care facility. The other option is home reversion. If you have an endowment policy that is not going to be paid for in the end, consider home reversion where you can sell part of your home or all of it to cover your current debts. It is not an ideal solution for everyone since it means selling what may be your family home.

As endowment shortfalls have led to mortgages in retirement there is a great concern that you will not have a proper product. Make certain you assess the various products including the Retirement Mortgage from Halifax. Consider your family and their life expectancy, your health concerns, and if it is possible to pay interest in a monthly payment during your retirement. Once you have done this you can speak with companies about their current products on offer in the UK.