Retirement interest-only mortgages
A way of borrowing in later life where you pay only the interest and the loan is repaid when you die or move into long-term care. How it works, who it suits, and how it compares with the alternatives.
A way of borrowing in later life where you pay only the interest and the loan is repaid when you die or move into long-term care. How it works, who it suits, and how it compares with the alternatives.
A retirement interest-only mortgage lets you borrow against your home in later life, paying only the interest each month. The loan itself is normally repaid when the last borrower dies or moves into long-term care, usually from the sale of the property.
It is often used by people whose existing interest-only mortgage is ending, or who want to release money from the house while continuing to live in it.
Later-life lending is specialist advice, and your broker can tell you whether they advise on it or can refer you to someone who does.
Because it is closely connected with pension income and the estate, ask your broker to introduce a financial planner as well, so the borrowing is decided alongside them.
This article explains how things work. It does not take your circumstances into account. Your mortgage broker can introduce you to a regulated financial planner at Equity & General where the question needs one.
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