“The Retirement Mortgage” is an Interest Only lifetime mortgage intended to fill the gap between residential mortgages and equity release, so if prospective borrowers benefit from a reasonable level of pension income then it can provide a more flexible alternative to a traditional roll-up lifetime mortgage. Available from age 55, it includes a Flexible Repayment Option, which allows clients to make ad-hoc capital repayments:
- Years 0 – 5 up to 10% of capital can be repaid each year without penalty.
- From Year 6 onwards unlimited overpayments!
- Whilst loan amounts released can be used for almost any purpose.
- This plan may also provide a viable option for clients coming to the end of their existing Interest Only mortgage arrangements.
- They may wish to extend borrowing into retirement.
- The flexibility of this plan will have great appeal.
- Rates fixed for 5 years, with option to re-fix if required
- Fixed ERCs of capital borrowed in first 5 years only
- Up to 50% LTV subject to affordability
- Flexible Repayment Option
- Affordability based on based on pension income, or projected pension income.
- Min/Max Loans: up to £500,000
- Min/Max Ages: 55 – 70
- Competitive application fees
- Option to roll-up at age 80
- No Negative Equity Guarantee