If you are aged 65 or over and living in, or buying, your own home with a small or no mortgage and want to borrow £10,000 or more, there is a new ‘optional payment lifetime mortgage’ product you may be interested in – especially if you’d like to pay some, or all, of the monthly interest on the loan. There is no financial underwriting and you do not need to have an income. Essentially, this is an interest only mortgage for retired people who don’t want the interest on their loan to compound and the loan amount to increase. 


  • To make home improvements: a new kitchen or conservatory
  • Repay an interest-only mortgage or other debts
  • Help a loved one onto the property ladder
  • To pay for a family holiday
  • To enjoy a more financially comfortable retirement

In our experience, these new, more flexible, equity loan products are giving people far more options as they grow older – giving home owners the ability to stop paying interest at any time, then start again if they decide, to ensure they have full control over their outgoings each month.


  • You can’t lose your home
  • You can move home – your lifetime mortgage can move house with you
  • You can pay interest so the debt does not increase
  • Inheritance protection – you can protect a percentage of your property to leave to you beneficiaries
  • Repayable on death or admission to long term care
  •   Negative Equity guarantee – you will never owe more than the value of the property

Also, the interest rate you take out will be fixed for the lifetime of the loan, and this can’t be changed. 

Taking independent financial advice is key to ensuring which product on the market is the perfect fit for your exact circumstances, and with over 25 years experience serving the people of Teddington, Twickenham and Richmond, The Financial Planning Group would be delighted to help provide the information you need.

You should think carefully before securing a loan against your home. This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

Please call Steve Padgham on 020 8614 4782 to arrange a meeting at our office in central Teddington or e-mail steve.padgham@fpgonline.co.uk

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