Interest-only residential mortgages are becoming more popular, as they enable home owners to reduce outgoings on later-life house purchases or to raise funds based on the equity in their property for a variety of purposes (e.g. to gift funds to children for their own house purchases).
Downsizing is a valid repayment method for the capital at the end of the term to applicants aged over 55.
Here is a summary of this type of 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.
- Please note this product is currently available in England and Wales only.
- This is not an Equity Release product.
NB: All mortgage products are subject to change, credit checks and a property valuation.Contact us to discuss this product and ask us any questions