Interest Only Mortgages
There are a few Building Society and Banks which are prepared to offer ordinary interest only mortgages to retired people, to allow them to release capital.
Interest only mortgages mean that you only repay the interest not the capital to the lender; therefore, providing you pay the interest each month, your debt remains the same, unlike other specialist schemes. As you are only paying the interest the monthly repayments can be an affordable alternative to roll up Lifetime Mortgages. However, as you are not paying back any capital, you will always need to repay the loan either when you die or at the end of any mortgage term which ever is the earliest.
The amount you can borrow under such schemes are usually limited to the amount your post retirement income can support, not your age or life expectancy.
To find out more about these schemes please download our brochure or call us on Freephone 0800 970 4883.
Statutory Warning
Your home may be repossessed if you do not keep up repayments on your mortgage.
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