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Interest Only Mortgages For Pensioners

UK Mortgage rates are at all time lows!

See the tables below for a selection of leading interest only deals or use our independent mortgage advice service to compare the market.

Details sort by initial rateLenderInitial rate Rate type Overall cost for comparison Product fee Monthly cost Enquire
Initial rate: 4.19%
Rate type: 5 year fixed
Monthly cost: £628.5 per month
Product fee: £995
Overall cost for comparison: 7% APRC
NatWest logo 4.19% 5 year fixed 7% APRC £995 £628.5 per month get quotes
Initial rate: 4.24%
Rate type: 5 year fixed
Monthly cost: £636 per month
Product fee: £995
Overall cost for comparison: 7% APRC
NatWest logo 4.24% 5 year fixed 7% APRC £995 £636 per month get quotes
Initial rate: 4.37%
Rate type: 5 year fixed
Monthly cost: £655.5 per month
Product fee: £995
Overall cost for comparison: 7.1% APRC
NatWest logo 4.37% 5 year fixed 7.1% APRC £995 £655.5 per month get quotes
Initial rate: 4.42%
Rate type: 5 year fixed
Monthly cost: £663 per month
Product fee: £995
Overall cost for comparison: 7.1% APRC
NatWest logo 4.42% 5 year fixed 7.1% APRC £995 £663 per month get quotes
Initial rate: 4.44%
Rate type: 5 year fixed
Monthly cost: £666 per month
Product fee: £1,495
Overall cost for comparison: 7.1% APRC
Yorkshire Building Society logo 4.44% 5 year fixed 7.1% APRC £1,495 £666 per month get quotes
Initial rate: 4.46%
Rate type: 5 year fixed
Monthly cost: £669 per month
Product fee: £0
Overall cost for comparison: 7.1% APRC
NatWest logo 4.46% 5 year fixed 7.1% APRC £0 £669 per month get quotes
Initial rate: 4.47%
Rate type: 5 year fixed
Monthly cost: £670.5 per month
Product fee: £1,495
Overall cost for comparison: 7.1% APRC
NatWest logo 4.47% 5 year fixed 7.1% APRC £1,495 £670.5 per month get quotes
Initial rate: 4.48%
Rate type: 5 year fixed
Monthly cost: £672 per month
Product fee: £1,495
Overall cost for comparison: 7.1% APRC
NatWest logo 4.48% 5 year fixed 7.1% APRC £1,495 £672 per month get quotes
Initial rate: 4.54%
Rate type: 5 year fixed
Monthly cost: £681 per month
Product fee: £495
Overall cost for comparison: 7.1% APRC
Yorkshire Building Society logo 4.54% 5 year fixed 7.1% APRC £495 £250 cashback £681 per month get quotes
Initial rate: 4.58%
Rate type: 5 year fixed
Monthly cost: £687 per month
Product fee: £0
Overall cost for comparison: 7.1% APRC
NatWest logo 4.58% 5 year fixed 7.1% APRC £0 £687 per month get quotes
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Representative Example:

A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.

 

The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).

 

In this example the overall cost for comparison is 3.7% APRC representative.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

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. 

Mortgage Specialists

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. 

Our Mortgage Broker Service

Special features of what we offer include:

  • Friendly telephone service from expert advisers

  • Whole of market service - we work with most UK lenders

  • Access to leading market mortgage rates

  • Access to exclusive loan deals not available on high street

  • Fast turnaround - speak to us today if you need to move quickly

  • We have lenders who will take into account previous defaults and missed payments 

  • Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions

"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support. 

Call us on 0117 403 4474

As your mortgage is such an important transaction, good advice is imperative.

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