mortgages

When it comes to borrowing money in later life, your home can provide some options. 

For example, a lifetime mortgage (a form of equity release) and remortgaging are two ways you can borrow money secured against the value of your property. 

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With both options you don’t need to move out of your home too. 

But these forms of financing are structured differently and come with their own characteristics. 

Below we explain how both these arrangements work, and what form of financing may be best suited for you.  

Explore your later life lending options with Age Partnership 

What is equity release?

Equity release is accessible for homeowners aged 55 and older and comes in two forms – a lifetime mortgage and a home reversion plan. 

A lifetime mortgage is most common of the two and allows individuals to convert a percentage of their home’s value into cash while continuing to own it and live in it, providing financial flexibility when its most needed. 

The money released, plus accrued interest will only need to be repaid when you die or move into long-term care. There are plans that may allow you to make voluntary payments subject to certain limits. Early repayment charges may apply above a set value.

A home reversion plan allows a homeowner to sell a portion—or sometimes all—of their property to a provider for less than market value, in exchange for a lump sum or regular income. The homeowner retains the right to live in the property typically rent-free until death or permanent care.

It is always recommended that you choose an equity release provider who is a member of the Equity Release Council, the body that represents this sector. 

Pros and Cons of equity release

A lifetime mortgage can be the right option for some but not for others, so it’s important to consider the advantages and disadvantages. These include: 

Pros 

• Flexibility – You can choose when to make interest payments or not, meaning you can prioritise other financial commitments. Conversely, you can make voluntary payments to limit the roll up of interest. 
• “No Negative Equity Guarantee” – This standard, set by the Equity Release Council, maintains that your estate will never owe more than your home is worth when it is sold.  It provides financial security that debt from your agreement will not be passed onto your family. 
• “Home for Life” – Another standard set out by the Equity Release Council provides you with the right to remain in your home for life, or until you move into long-term care. This provides reassurance that as long as you keep to the terms of your agreement, you can stay in your property. 

Cons 

• Expensive interest rates – Lifetime mortgages typically offer higher interest rates than those available for mainstream mortgages. And with no certainty of when your repayment plan will come to an end, it can be one of the more expensive forms of borrowing
• Reduces the value of your estate – Equity release reduces the value of your estate and could impact funding long-term care. You’ll have less to pass on to your loved ones as an inheritance. You can, however, ringfence some of your home’s value if this is a significant concern – it’ll just impact how much you can borrow. 
• May affect your entitlement to benefits now or in the future – The exact impact on your means-tested benefits depends on the type of benefit and how the released funds are handled.

For a more detailed breakdown of the advantages and disadvantages of equity release, read this article. 

What is remortgaging? 

Remortgaging refers to the process of entering into a new lending agreement for your property. This can either be under new terms with your existing lender, or to transfer your debt to a new one. 

This process typically happens when you come to the end of your previous agreement – like the end of your fixed term. If you initiate the remortgage process before your deal comes to an end, then you may be forced to pay an early repayment charge. 

Think carefully before securing debts against your property. Your property may be repossessed if you do not keep up repayments on your mortgage.

How does remortgaging release equity from your home? 

If you have enough equity in your home, you may be able to release additional funds by borrowing against its value. 

This money can be used for other purposes, like funding home improvements or for your enjoyment. 

Even if you’ve paid off your mortgage, you may be able to agree a new arrangement. A mortgage broker can help identify your options. 

Pros and Cons of remortgaging

Pros 

• Switch to a better rate – Your mortgage might offer the best interest rates compared to other forms of lending – like a personal loan or lifetime mortgage. This might make it the most affordable form of borrowing of your options. However, remember to check your rate against the borrowing length. Mortgages are long-term borrowing options, and if your repayments are spread over a number of years it could cost more than a personal loan on a more expensive rate but shorter repayment period. 
• Aware of total cost of borrowing – Under a lifetime mortgage, the total cost of your borrowing is uncertain to a degree. While you’ll never owe more than your home’s worth, the cost of borrowing is long-term and depends on how long you stay in your home. With remortgaging, you’ll know how much your borrowing will cost in interest and it allows you to more effectively plan for inheritance.  
• Stay in your home – Remortgaging also allows you to stay in your home, as long as you keep up with your monthly repayments. 

Cons 

• Fees – If your mortgage is with a new lender, then you may need to pay revaluation or conveyancing fees. This can increase the overall cost of your borrowing. 
• Can you find a lender? – As you get older, you might find your options more limited. So, getting in touch with a broker can help identify the best course of action for you.
• Risk of negative equity– If you’re borrowing more money against your home, you could slip into negative equity. This is where the amount you owe is worth more than the property’s value

How do I know what’s right for me?

It’s always best to speak with a qualified financial advisor as they can help you explore which financial options are available to you. 

Advice is required before proceeding with equity release and there may be other options which better suit your circumstances. Age Partnership can help you find out more and if it could be right for your individual circumstances.

Through their service, initial advice is provided for free and without obligation. Only if your case completes would an advice fee of £1,995 be payable. Other lender and solicitor fees may apply. 

You should be aware that equity release requires repaying any existing mortgage. It will also reduce the value of your estate and impact funding long-term care.

Get in touch with Age Partnership here. 

Age Partnership is a trading name of Age Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Registered address, 2200 Century Way, Thorpe Park, Leeds, LS15 8ZB.

Three days after President Trump publicly accused Sen. Adam Schiff of committing mortgage fraud, an attorney for Schiff wrote privately to the Department of Justice that there was “no factual basis” for the claims — but “ample basis” to launch an investigation into Bill Pulte, the Trump administration official digging into the mortgage records of the president’s most prominent political opponents.

“We are disturbed by the highly irregular, partisan process that led to these baseless accusations; the purposeful, coordinated public disclosure of these materials containing confidential personal information, without regard to the security risks posed to the Senator and his family; and Mr. Pulte’s role in this sordid effort,” attorney Preet Bharara wrote in the July 18 letter reviewed by The Times.

The Federal Housing Finance Agency, where Pulte serves as director, did not respond to a request for comment Tuesday.

A Justice Department spokesperson said Atty. Gen. Pam Bondi has directed Ed Martin — a Trump loyalist and director of the department’s “Weaponization Working Group” — to “commence a probe” into criminal referrals from the housing agency, and Martin “will make public statements regarding the matter when appropriate.”

Trump previously nominated Martin — a Missouri lawyer and conservative activist with no prosecutorial experience — to serve as the U.S. attorney in Washington, D.C. However, Schiff, a member of the Senate Judiciary Committee, placed a hold on Martin’s nomination, and it was ultimately withdrawn amid a lack of support from Republican senators.

Bharara outlined several reasons why he believed the president’s allegations against Schiff are without merit, and attached a copy of a letter from Schiff to the mortgage lender on his home near Washington, D.C, that Bharara said proved Schiff had been “completely transparent” about listing both that home and a unit in his home district in Burbank as primary residences in mortgage documents.

Schiff’s simultaneous designation of two different homes as primary residences was the basis for Trump’s allegations and for Pulte’s referral of the matter to the Justice Department for criminal review.

Bharara blasted Pulte as “a Presidential appointee who seems to have made it his mission to misuse the power of his office to manufacture allegations of criminal conduct against the President’s perceived political adversaries,” and advised top Justice Department officials to not become complicit in such a politically motivated campaign.

“You should decline Mr. Pulte’s invitation to join his retaliatory harassment of Senator Schiff,” Bharara wrote to Bondi and Deputy Atty. Gen. Todd Blanche. “Instead, Mr. Pulte’s misuse of his position should be investigated by a nonpartisan Inspector General to determine whether Mr. Pulte’s conduct should be referred to the Department of Justice for criminal investigation.”

Democrats have questioned the legality of Pulte’s probes into several of Trump’s political opponents, including Schiff, who led a House impeachment of Trump; New York Atty. Gen. Letitia James, who has led investigations into and lawsuits against the president; and Lisa Cook, a Federal Reserve governor who has voted to maintain federal interest rates rather than reduce them as Trump has demanded.

Pulte has lodged different allegations against each, but at their core is the claim that they all misrepresented facts in mortgage documents to secure favorable tax or loan terms, including by listing more than one home as their primary residence at the same time.

Trump cited the claims against Cook as reason to remove her from the Federal Reserve Board of Governors, which she is challenging in court. Critics have condemned the move as a partisan attack designed to allow Trump to wrest control of the economy away from the independent Federal Reserve.

Pulte has downplayed or ignored reporting by ProPublica that several of Trump’s own Cabinet members have made similar housing claims in mortgage and other financial paperwork, and reporting by Reuters that Pulte’s father and stepmother have done so as well. Additional Reuters reporting on eight years of court data found that the federal government has only rarely brought criminal charges over misstatements about primary residence in mortgage records.

With Schiff, who is a former prosecutor, Trump alleged that he intentionally misled lenders about his primary residence being in Potomac, Md., rather than in California, in order to “get a cheaper mortgage and rip off America.” Trump cited an investigation by the Fannie Mae “Financial Crimes Division” as his source.

California Sen. Adam Schiff’s lawyer wrote a letter to the Department of Justice saying there was “no factual basis” for President Trump’s accusations that Schiff had committed mortgage fraud.

(Jose Luis Magana / Associated Press)

A memorandum from Fannie Mae investigators to Pulte, previously reported by The Times, noted that investigators had been asked by the Federal Housing Finance Agency inspector general’s office for loan files and “any related investigative or quality control documentation” for Schiff’s homes.

Investigators said they had concluded that Schiff and his wife “engaged in a sustained pattern of possible occupancy misrepresentation” on their home loans between 2009 and 2020 by simultaneously identifying both the Potomac home and the Burbank unit as their primary residence. The investigators didn’t say they had concluded a crime had been committed.

Schiff has publicly dismissed Trump’s allegations as baseless, accusing the president of making mortgage fraud claims “his weapon of choice to attack people standing in his way and people standing up to him, like me.” Bharara’s letter outlined his defense in more detail.

Part of that defense was the letter Bharara said Schiff sent to his lender on his Maryland home, Quicken Loans, a copy of which was provided to the Justice Department and reviewed by The Times.

In that letter, which he sent during a 2010 refinancing, Schiff wrote that while California was his “principal legal residence” and where he paid taxes, he had been informed both by counsel for the lender and for the House Administration Committee that the Maryland home “may be considered a primary residence for insurance underwriting purposes” because members of his family lived in it for most of the year.

Bharara called the letter a “transparent disclosure” and “the antithesis of ‘mortgage misrepresentation.’”

Schiff has previously said that neither of the homes were vacation or investment properties and were classified correctly, both in accordance with how they were used by his family and in consultation with House attorneys and his lenders.

Another part of Schiff’s defense, Bharara wrote, was that even if he had committed fraud by making false statements in his mortgage filings — which Bharara said he did not — the 10-year statute of limitations for charging him has lapsed, as the “most recent mortgage application that Mr. Pulte even accuses of inaccuracy is more than twelve years old.”

Bharara also laid out several reasons why he felt that Pulte’s actions deserve to be investigated.

Bharara asserted that the Federal Housing Finance Agency inspector general appeared to have asked the Fannie Mae Financial Crimes Investigation Unit to delve into Schiff’s mortgage records “at Mr. Pulte’s behest,” and that Pulte personally referred the matter to the Justice Department in May, before the Fannie Mae unit had even provided him with its findings.

He also wrote that the criminal referral was made public “as the President sought to distract from criticism related to [convicted sex offender] Jeffery Epstein.”

Schiff’s address was published as a result, which Bharara said presented a threat to the senator and forced him to take “extra security precautions.” Schiff also has launched a legal defense fund to help him defend himself against the president’s accusations.

Bharara, a former U.S. attorney in New York, described Pulte’s actions as “highly irregular,” and part of a “pattern” of him “misusing his office” to go after Trump’s political opponents.

“Opening an investigation on these deficient facts, after this much time has passed, after such an irregular and suspect process, and when the President has repeatedly expressed his longtime desire to investigate and imprison Senator Schiff, would be a deeply partisan and unjust act, unworthy of the Department of Justice,” Bharara wrote. “Instead, it is Mr. Pulte’s conduct that should be investigated.”

HOUSEHOLDS across the country are being warned to brace for a financial squeeze as the cost of government borrowing skyrockets to levels not seen since 1998.

This now directly threatens to push up mortgage rates and could usher in a new wave of tax hikes.

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The pound has tumbled in response to the growing unease, highlighting investor concern over the UK’s economic stability. 

At the heart of the issue are government bonds, known as “gilts,” which the government issues to borrow money.

These bonds offer investors a return, referred to as the “yield.”

In recent weeks, gilt yields have been rising rapidly, making it more expensive for the government to borrow.

This morning, yields soared further, with 30-year gilts reaching 5.72% – the highest level in nearly 30 years – while 10-year gilts climbed to 4.85%.

This spike signals that investors are nervous.

They are demanding a higher return to lend to the UK, worried about stubborn inflation and a gaping £51billion hole in the nation’s finances.

The rise in government borrowing costs is putting serious pressure on household budgets in two key ways

Firstly, it’s driving up mortgage rates.

The link between government gilt yields and mortgage rates is direct and unavoidable.

Lenders use “swap rates,” which closely track gilt yields, to set the prices of fixed-rate mortgage deals.

As these rates climb, fixed mortgages become more expensive.

Since August 1, two-year swaps have risen from 3.56% to 3.74%, while five-year swaps have gone from 3.63% to 3.83%.

Major lenders like Barclays have already started increasing rates, and even a small rise can add significantly to monthly payments on a typical £200,000 mortgage.

With swap rates continuing to rise in recent weeks, experts warn that mortgage rates are likely to increase further.

Separately, Chancellor Rachel Reeves faces a difficult challenge in her Autumn Budget, scheduled for November.

Higher borrowing costs are eating into public funds, and many economists believe tax increases will be necessary to fill the financial gap.

Although the government has promised not to raise income tax, national insurance, or VAT for “working people,” other tax measures are reportedly being considered.

One proposal is applying National Insurance to rental income, which critics fear could result in landlords passing on the cost to tenants through higher rents.

Another idea being debated is replacing stamp duty with an annual property tax, which could affect homeowners.

There are also rumours of reducing pension tax relief or cutting the tax-free lump sum, moves that could generate billions but might hurt savers.

Plus, there’s speculation about lowering the VAT threshold, which would bring more small businesses into the tax system.

This could increase their costs and potentially lead to higher prices for consumers.

Reeves is expected to make economic growth the centrepiece of her next Budget, warning that Britain’s economy is “stuck” and in need of bold solutions.

What can you do about it?

None of the proposed changes have been confirmed yet, and the government hasn’t ruled them out either.

However, any new measures won’t take effect until after the Budget in November.

It’s important not to make rash decisions based on speculation.

If changes are announced, you’ll have time to act and protect your finances before they come into effect.

For instance, if stamp duty is replaced by an annual property tax from a certain date, you could move house before the deadline to avoid the extra cost.

Similarly, if the government introduces capital gains tax on high-value properties, you might consider downsizing to a smaller home before the change is implemented.

 Rob Morgan, chief analyst at Charles Stanley, said: “Taking pre-emptive action can outright backfire.

“Last year some people were concerned about restrictions around taking tax free cash from pension and took withdrawals they wouldn’t have otherwise made.

“This removed the money from a tax-efficient environment and potentially stored up tax issues that will come back to haunt them.

“Instead, it’s best to wait to see what happens, consider the consequences, and take advice as required before acting.”

Most of the proposed measures are likely to affect only the very wealthy, so you may not be impacted at all.

If you’re concerned, there are steps you can take to prepare and safeguard your finances.

Check your financial health

If you are worried about your finances then you should speak to a financial adviser.

They will be able to offer you advice about your situation and explain if any of the measures will affect you.

You can find one using unbiased.co.uk – but remember, you will pay a fee.

It’s good practice to sit down and take stock of your finances every six months and work out a plan.

Work out all your bills and outgoings and what income you have and factor in any changes, such as bills going up or new income streams.

Think about what you need to do to make the most of your money. For example, do you need to prioritise paying off debts or saving for a house deposit.

Our guide to paying less tax legally could help you avoid giving away more cash to the tax man than necessary.

Review your mortgage deal

If your mortgage deal is coming to an end soon, act now.

Locking in a fixed rate could shield you from rising rates and market uncertainty.

Aaron Strutt, of mortgage broker Trinity Financial, said “For the moment there have not been significant price hikes but it’s probably worth locking in a mortgage rate if you are buying somewhere or due to remortgage, to try and keep away from any market turbulence.”

If you are coming to the end of a fixed deal, most lenders let you lock in a new rate up to six months beforehand, which can be worth doing.

If rates fall after you agree a new deal, some lenders will let you sign a new one at a lower rate.

Think when investing

Gold prices surged to a record high of $3,546.99 per ounce (£2,643.82) on Wednesday, marking its seventh consecutive daily rise.

Investors are flocking to the precious metal as a safe haven amid inflation fears and fiscal uncertainty.

However, financial advisers suggest maintaining a balanced and diverse investment portfolio as a better strategy for managing market volatility.

A small allocation to gold (5-10%) can be useful, but it shouldn’t be the core of your investment plan, according to Charles Stanley.

Don’t forget a will

If you’re concerned about potential changes to inheritance tax, it’s essential to have a will in place.

Without a will, your estate will be subject to intestacy rules, which could result in a higher inheritance tax bill.

This is especially important for unmarried couples, as they won’t automatically inherit from each other, even if they’ve lived together for years.

Check how to make one in our guide.

Make your savings work harder

More than 31million bank customers have £186billion in savings accounts earning just 1.5% interest, according to banking app Spring.

These accounts generate £2.3billion a year in interest, but savers could earn over three times more by switching to accounts offering up to 5% interest, The Sun can reveal.

The average bank customer has around £10,000 in savings, according to Raisin.

If that £10,000 is kept in an easy access account earning 1.5% interest, it would generate just £150 in interest each year.

But switching to Cahoot’s 5% easy access account would boost that to £500, earning you an extra £350.

If your savings account pays less than the current inflation rate of 3.8%, it’s time to look for a better deal.

IF you’re wondering where your money’s going each month, it might not be big bills or bad luck to blame but small, repeated mistakes that add up fast.

From letting your savings sit in low-interest accounts, to underestimating the real cost of long mortgage terms, financial experts warn that common habits could be quietly emptying your bank accounts.

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We asked money experts and behavioural scientists to reveal the biggest habits that are holding people back.

1. Not knowing what’s coming in and going out

It’s hard to feel in control of your money when you don’t know where it’s actually going.

Many people assume they have a rough idea, but the reality is that forgotten subscriptions, auto-renewing services and small daily purchases quickly add up.

Without visibility, your budget can slowly unravel, and by the time you realise, you’ve slipped into the red.

Vix Leyton, consumer expert at Thinkmoney, says the fix starts with routine: “Take time to know what your outgoings are and what is coming in.

“Some apps, like Thinkmoney, offer a snapshot of what you’re spending, and can even ringfence bill money for you so you don’t accidentally end up facing penalties and late fees.”

Even a five-minute weekly check-in can help avoid nasty surprises and highlight where cutbacks are needed.

2. Living without a savings buffer

It’s hard to save money – but not having a buffer can leave you exposed to high credit when you need cash quickly.

Whether it’s a broken boiler, a car that won’t start or a sudden cut in hours at work, not having a cushion means falling back on credit cards or payday loans just to stay afloat.

The result is a constant feeling of stress, and a budget that can be thrown off by the smallest shock.

Thomas Mathar, behavioural researcher and host of The Money:Mindshift Podcast, says a little slack goes a long way.

He said: “Even a modest buffer, like one month’s rent, can give you the breathing space to make better decisions and avoid high-cost debt.

“It’s not just about the numbers, it’s about having mental and financial slack when life throws you a curveball.”

3. Letting debt pile up month after month

More and more people have credit card debt, which means it can be easy to think it’s business as usual, especially when the minimum payments are low.

But ultimately, you’re paying interest to the bank instead of putting that money toward your own goals. Over time, that can add up to hundreds or even thousands of pounds in lost savings.

“Too many people accept credit card debt as a normal state of affairs. It’s not,” says Mathar.

“Paying down high-interest debt quickly is one of the most powerful things you can do for your long-term well being. It’s buying yourself back freedom, and peace of mind.”

If you’re juggling multiple debts, focus on the most expensive ones first and look into 0% balance transfer options if your credit score allows.

4. Having psychological armour to support you

In the age of side hustles and flashy online success stories, it’s tempting to ditch steady work for riskier pursuits.

But without a reliable income it’s hard to build long-term security.

Inconsistent earnings often mean falling behind on bills, using credit to bridge the gap, and struggling to plan ahead.

Mathar warns that it’s important to have some sort of regular income, even if you’re pursuing other hustles on the side.

He says: “A steady income isn’t just about covering bills, it’s psychological armour.

“When you’re living month-to-month or under-earning compared to your potential, the stress compounds.

“You don’t need to chase big money, but you do need income that’s ‘good enough’ to support a resilient, happy life.”

5. Leaving savings in a dead-end account

You might feel good about putting money aside, but if it’s sitting in an easy-access account earning barely any interest, your savings are losing value in real terms.

With inflation still high, the cost of leaving cash in low-yield accounts is higher than many realise.

Adam French, head of news at Moneyfactscompare.co.uk, says this mistake is all too common.

Adam said: “The likes of HSBC, Lloyds Bank, Santander, NatWest and Barclays all have easy access accounts paying around 1.1 to 1.2 per cent interest, far below the typical returns savers could expect, which is currently 3.51 per cent.”

The top performing options can pay even more, and shopping around and switching accounts only takes a few minutes online.

6. Not making the most of your ISA allowance

More savers than ever are being hit with tax bills they could have avoided.

Frozen tax thresholds mean that even modest savers can end up over the personal savings allowance, paying tax on any interest they earn.

That means, if you’re not using your ISA allowance, you’re potentially giving money away for free.

French explains: “Saving and investing are some of the best ways to build wealth over time.

“But it’s important that savers are aware of their tax liability on any profits they make – which can add up over the course of a few years.

Plenty of savers can avoid this tax bill by making use their yearly ISA allowances.

You can save or invest up to £20,000 a year tax-free, and every pound sheltered from tax is a pound that keeps working for you.

7. Only saving for retirement, and nothing else

Putting money into a pension is smart, but it shouldn’t be your only savings plan.

Many people now take career breaks, retrain, care for relatives or start businesses, and those transitions need funding too.

Mathar says ignoring this reality can leave people exposed.

“We don’t live three-stage lives anymore – education, work, retirement… A ‘transition fund’ – even just a few months’ salary – makes those big life pivots possible without financial panic.”

8. Being too harsh on yourself when things go wrong

Money mistakes happen. But too often, people fall into a cycle of guilt and avoidance, especially if they’re already struggling.

That mindset can stop you from facing your finances or reaching out for help, which only makes things worse in the long run.

Mathar believes the solution starts with self-empathy. “Here’s the truth: we’re all a bit messed up when it comes to money.

Our brains are wired for short-term wins, not long-term planning.

The goal isn’t to be perfect with money; it’s to build enough slack, mental and financial, so that one mistake or setback doesn’t knock you flat.”

9. Not overpaying your mortgage when you could

With mortgage rates still high and household budgets under pressure, many borrowers are choosing longer terms to keep monthly payments manageable.

But unless you’re also making overpayments, that strategy can come at a serious long-term cost.

French says small changes now can lead to huge savings later: “Overpaying by £200 per month on that same £250,000 40-year mortgage could shave almost 13 years off the mortgage term, saving them around £123,000 in interest payments.

“This is all without being tied to having to consistently make higher payments every single month – boosting the flexibility of their budget and their financial resilience.”

Most lenders allow up to 10 per cent overpayment each year.

Even £50 a month can help you become mortgage-free sooner and pay far less in interest overall.