What is savings credit please, when attached to a pension?

FindMyWayBack

Sorry I have only just come back to the post, I have had a very busy day. I am going to look at all the links after I have chilled out for a bit. Thank you for all the comments and links, I will be back soon...............

Malthusian

FindMyWayBack said:

I don't understand what any of that means sorry. How can a person in their 80's change a mortgage? What is rolled up interest please?

It means that the interest is added to the loan balance instead of being paid from his income. This means he will pay more in the long term (he pays interest on the interest), but if he stayed in the house until death it would only be his estate that paid, and leaving an inheritance sounds like the least of his worries.

If he has a mortgage in his 80s it may already be an "equity release" mortgage with no fixed end date (i.e. it is only repayable on death, or other circumstances such as moving into long term care), and stopping the interest and rolling it up within the loan instead would probably be trivial. If it's not trivial then one way or another he can convert it to an equity release mortgage with no end date. He would need independent financial advice.

Renting would cost a load more than the mortgage

Yes, but he'd have whatever equity is left in the house to pay it with. It is very possible that it's an unrealistic option in his circumstances as the rent would exhaust the capital too quickly, but I don't know his circumstances (i.e. how much the house is worth vs how much he'd need to rent a suitable property). It's just an option to be considered alongside converting the mortgage to rolled-up interest.

and the upheaval for a man of his age is unrealistic.

So is doing nothing from the sound of it. People in their 80s re-marry and move to a different continent. I'm not saying he should sell and start renting but if he has capital in his house he has options. Capital that he is paying interest to preserve when at his age it should probably be preserving him.