Rates are currently available from 1.65% fixed for five years (3% APRC).
An interest only loan of £100,000 over a ten year term based on this interest rate would give initial payments of £137.50 per month.
This is based on a 10 year term (with 120 monthly payments) and assuming at the end of the five years, you then went onto the lenders standard variable rate, you would pay back a total of £129,881 including the £100,000 borrowed, which would be due to be repaid at the end of the term.
The lender would charge a £999 product fee, which can be added to the loan if required. You would have a free valuation and free solicitors for re-mortgages and would also be charged our standard broker fee of £995 payable on completion.
The actual rate would depend on your individual circumstances.
Please ask for your free personalised key facts illustration.
RETIREMENT MORTGAGE INTEREST RATES CURRENTLY AVAILABLE