Although solely interest only residential mortgages are becoming less common as a rule, this new product being launched in June 2016 offers residential mortgages on interest only basis with ‘downsizing’ as a valid repayment vehicle for the capital at the end of the term to applicants 55+!
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.
- Please note this product is currently available in England and Wales only
- This is not an Equity Release product.
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!
The actual interest rates available will depend upon your circumstances. Please ask for a personalised illustration. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee of £495 is payable upon completion of your mortgage. A fee only option of 1% of the loan amount, payable upon completion, is also available.