As we approach retirement age, it can become harder to secure the renewal of an interest-only mortgage, even if you can comfortably afford the monthly payments.
A retirement interest only mortgage can provide homeowners in that position with such a solution. It can also help to unlock some of the equity in their home to help reduce debt, fund home improvements or book that dream holiday.
There are two key differences between an interest-only mortgage and a retirement interest only mortgage:
– the loan is usually only paid off when you die, move into long term care or sell the house
– you only have to prove that you can afford the monthly repayments
Retirement interest-only mortgages are generally aimed at pensioners and over 55’s who might find them easier to qualify for than a typical interest-only mortgage. For older homeowners, this mortgage solution can reduce the need for downsizing a home, provide some inheritance and unlock equity to pay off outstanding debt.
The amount that homeowners can borrow will still be subject to affordability checks and the home will be sold off to repay the loan when the owner dies or enters long-term care. On selling the home, the loan must be repaid.
Get the best retirement interest only mortgage
As an award-winning independent mortgage adviser, City Mortgage Solutions have access to a wide range of industry leading deals, enabling us to find the best solution to suit your circumstances.
There are currently some very attractive deals for older homeowners looking to renew their interest-only mortgage. Contact us today to make an appointment with one of our experienced mortgage brokers, and benefit from independent mortgage advice, designed to secure you the best deal.