Interest Only Mortgages For Pensioners
Getting an interest only mortgage as a pensioner
Many of the mainstream mortgage lenders have an upper age limit from which they will not be able to offer finance, normally about 70. However they may also set an age limit by which the mortgage must be repaid in full for an interest only mortgage or when the final repayment date must be for a repayment mortgage.
However there are a number of lenders which have much higher age limits, some may not have an upper age limit at all provided the borrower fulfils certain criteria.
Speak to us today to discuss lenders who have no upper age limits on lending on 0117 403 4474 or complete our request callback form.
If you would like to speak to a Fair Mortgages advisor you can fill in the online contact form to request a call-back for a free initial consultation. Fair Mortgages is a whole of market adviser who has access to a variety of mortgages from a range of specialist lenders that borrowers cannot apply for directly, one of which might present the best choice of mortgage for you.
If you are currently enjoying your retirement or about to retire, but you are looking to either remortgage or take out a mortgage to buy new property you may be aware that it can be more difficult for older people to secure mortgage finance from many lenders. As such you might be wondering what interest only mortgages for pensioners are available.
Proving pension income
As with other kinds of mortgage, pensioners are required to illustrate that they have the ability to repay their mortgage.
As interest-only mortgages are repaid in full at the end of the contract you will need to be able to prove that you have the means to make both your monthly interest payments as well as to repay the original sum borrowed at the end of the mortgage term.
Lifetime interest only mortgages
If you have been considering remortgaging rather than your current property there are also specialist interest only lifetime mortgages available specifically to older people.
Interest only mortgage equity release plans work differently to traditional interest only mortgages. Rather than there being a set date on which you would have to repay the sum you originally borrowed, this sum is repaid through the eventual sale of your home when you either die or move permanently into a care home. Up until this point you make monthly or annual payments on the interest that accumulates on this debt, as you would with a conventional interest-only mortgage.
Any capital leftover from the sale of your home once the lender has been repaid can be passed on to the beneficiaries of your estate.
There are a variety of equity release plans available, when looking for the right plan you may wish to check if it carries a ‘no negative equity’ guarantee. Which would mean that if the value of your home was to become less than the sum you borrowed your estate could not be charged more than the amount the property eventually sells for.
If you want to find out more about equity release schemes you can complete our equity release form to request a call-back.
You can either fill in our online contact form to request a call-back for a free initial consultation, or you can call directly on: 0117 403 4474.
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