Interest only mortgages in retirement

Posted on 13 April 2011 by g. angus


I am 71 yrs old, advise me on a interest only mortgage please.

G Angus,

There is a limited choice of interest only mortgages available to you and only one high street lender, Halifax, who has an open ended mortgage on which you make monthly interest payments until the property is sold and the mortgage repaid. 

Halifax will base the amount they will lend on your annual income whereas the more usual Equity Release mortgages are based on your age and the property's value.  With Equity Release mortgages you do not normally make any monthly repayments and the interest is rolled up and only repaid on sale or if you move into a care home.  As they are quite complex and I recommend that you speak to your solicitor and any potential beneficiaries of your estate about your plans before proceeding.

John Charcol can arrange mortgages through one of the country's leading Equity Release specialists and I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to answer any questions and advise you accordingly.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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