Interest only standard residential mortgages for applicants aged over 55
Although we reported earlier this week that solely interest only residential mortgages are becoming less common, this new product being launched offers residential mortgages on interest only basis with ‘downsizing’ as a valid repayment vehicle for the capital at the end of the term!
Here is a summary of this new product:
- Available to applicants between ages of 55 – 85
- Loan terms from 5 years up to the youngest borrower’s 95th birthday
- Acceptable repayment vehicles include downsizing, sale of other UK properties or investments
- Salary, self-employed, pensions, investments and rental incomes are all acceptable for affordability assessment
- Loans available for purchase, capital raising and remortgage, from £20,000 – £500,000
- This is not an Equity Release product
- Please note this product is currently available in England and Wales only
The current rates available for this product is:
|2yr fixed||5yr fixed||2yr discounted|
|3.49% fixed||3.95% fixed||3.30% variable:
a discount of 0.90% from the lender’s Standard Variable Rate
With additional Incentives such as:
|Re-mortgage/Capital raising: Free Legal package* + Valuation (up to £350,000)|
|Purchase: Free valuation (up to £350,000)|
*Solicitor fees + standard disbursement if using the lender’s own solicitors
NB: All mortgage products are subject to change, credit checks and a property valuation.
To discuss this product and any queries that you may have about it, please contact us now!