Pension mortgage: an introduction
Senior citizens are an increasing component of the society and dependency in old age is increasing. There is significant increase in longevity and low mortality, on the other hand cost of good health care facilities is spiraling and there is little social security. Senior Citizens need a regular cash flow stream for supplementing pension/other income and addressing their financial needs. Pension mortgage was introduced by the loaning firms in order to facilitate them. For most Senior Citizens, the house is the largest component of their wealth. Pension mortgage is offered keeping it only as security.
Pension mortgage: facts and figures
Pension mortgage is offered to every UK senior Citizen who is above 60 years of age. Married couples will be eligible as joint borrowers for financial assistance.
In such a case, the age criteria for the couple would be taken in account, subject to at least one of them being above 60 years of age. One should be the owner of a self- acquired, self occupied residential property (house or flat) located in UK, with clear title indicating the prospective borrower's ownership of the property. The residential property should be free from any encumbrances. The remaining life of the property should be at least 20 years. The prospective borrowers should use that residential property as permanent primary residence. This property is used as a mortgage or says collateral against the money borrowed. In case of any repayments lender can lawfully acquire the possession of the property. The amount of loan will depend on market value of residential property. Further the interest rates and loaning period also depends on the current age of the borrower. This varies from lender to lender.
Pension mortgage: suggestions
The loaning world is quite competitive market so availability is no problem. In fact these days pension mortgage is being served online as well. They provide you a better area to search for the desired plan. Also they save enough time and energy as for seniors it is quite cumbersome task to visit different lenders. Only care which is desired before going for the pension mortgage is regarding its repayment. Any delay or default can cause you to loose the possession of the property, which would cause social embarrassment and further problems.
