Borrowers who have retired may find their options from high street mortgage lenders may now be limited.
You can still get a host of retirement mortgages to fund a new property purchase or to release equity from an existing property.
Retirement mortgages can either be interest-only such as the retirement interest only mortgage or it can be an interest-only rolled up mortgage.
Features of a retirement mortgage
Most retirement mortgages have the same features:
- Retirementmortgages don’t have any fixed term regardless of if they are interest-only or repayment. Retirement mortgages will last till you die or move into long term care
- The capital is always repaid at the end of the mortgage term which is when you move into long term care or die.
- With a retirement mortgage, your home can still be repossesed so it is important that you keep up the repayments on your mortgage.
- The amount you can borrow on a retirement mortgage is based on your ability to afford the mortgage based on your retirement income and your expenditure, up to a maximum loan to value ratio.