![]() ![]() Because these regular repayments are made borrowers are not adding to the mortgage balance or attracting compound interest. Monthly repayments must be made and are on an interest only basis.At this point, the loan is repaid by way of the property being sold, so a separate repayment plan is not required. A RIO mortgage has no set end date, and continues until the death of the last-named borrower, or when they move into long-term care.Retirement Interest Only mortgages are for borrowers aged 55+ and can be used either to purchase a new property or remortgage an existing home.We’ve put together some general information to help you learn more about Retirement Interest Only mortgages. Some deals also let you pay off some of the capital each month, along with the interest, which will help reduce the total amount owed and ensure that more of your property can be left to your loved ones.We know there’s lots to think about when it comes to finding a mortgage. It’s also possible to move home with a retirement interest-only mortgage. You only need to prove that you can afford the monthly interest payments, not the amount borrowed.Ī retirement interest-only mortgage can be used to pay off an existing mortgage or release cash to increase your income in retirement. However, unlike a standard interest-only mortgage, the loan is paid off when you die or move into long-term care. The loan is secured against your home and only the interest, not the amount borrowed, is repaid each month. These are designed to help older borrowers who don’t qualify for a standard residential mortgage and work in a similar way to traditional interest-only mortgages. There are also specific interest-only mortgages for over 70s, known as retirement interest-only mortgages. Some lenders also offer buy-to-let mortgages for over 70s. With these, the loan and interest are repaid when you move into care or pass away.Īnother option is a home reversion plan, which allows you to sell all or part of your home in return for a lump sum or regular payments. ![]() There are also equity release schemes, such as lifetime mortgages that require no monthly repayments. The loan is then repaid when you die or move into long-term care. Other mortgages for pensioners over 70 include retirement interest-only mortgages, which only require you to repay the interest each month. The key to getting accepted for mortgages for over 70s is to convince the lender you can afford your repayments on your income. The reduced term results in higher monthly repayments. This means you may have to accept a shorter mortgage term of perhaps 10 years rather than the standard 25 years. Others require borrowers to have repaid the mortgage by between 75 and 95. Maximum mortgage age limits vary depending on the provider – some lenders have no maximum age limit. There are also specialist mortgages aimed at older borrowers that can offer an alternative option and help you borrow funds to buy a new home or borrow against your existing property. As life expectancy continues to rise and people retire later in life, lenders are becoming increasingly flexible and many have extended their maximum mortgage age limit to reflect this. Yes, if you’re over the age of 70, it’s still possible to get a standard mortgage. ![]()
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