Interest Only Mortgages
An interest only mortgage allows you to make monthly payments that just cover the interest on the money that you have borrowed.
Are you finding it difficult to obtain an interest only mortgage? (Some lenders require you to be on an income of £75,000+ or require you to have at least £300,000 of equity in your property). Perhaps you have an interest only mortgage that is coming to an end and your current lender will not assist? In which, case we can certainly help.
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You may intend to repay the mortgage by downsizing in the future, inheritance, cashing in other investments or switching to lifetime mortgage at some stage.
We have schemes available to age 95 and beyond or even for life (these are called Retirement Interest Only Mortgages - RIO's). Competitive rates are currently available, many schemes have a free valuation and legals package.
RETIREMENT INTEREST ONLY MORTGAGES (RIO's)
This is a relatively new product on the market offered by High Street building societies and specialist lenders as an alternative to equity release. With a Retirement Interest Only mortgage the lender will allow you to borrow the funds that you require on an interest only basis for life.
You have to service the interest on it each month, even if one one of you were to die meaning that affordability for this product is calculated on the income that would be there following the death of one partner.
These mortgages are portable onto a new property and can be paid off penalty free once the 2, 3 or 5 year fixed rate periods have expired.
Depending on income, you can borrow up to 75% of the property value and they can be used for either a house purchase or a mortgage on a current residential property.
If you're looking to take out an interest only mortgage or to replace an existing interest only mortgage that is coming to an end, we have High Street Building Societies and specialist lenders who will take a more flexible approach to interest only mortgages.
You may plan to repay your interest only mortgage by one of the following: -
Selling and downsizing
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Future inheritance
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Selling a second property that you own
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Making ad hoc lump sum payments
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You may wish to switch to some type of Equity Release or Lifetime Mortgage product in the future.
To discuss your individual situation in more detail or to obtain your free personalised illustration with no obligation, please call us on 01902 765005