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Term Interest Only or Later Life Mortgages

A Term Interest Only or Later Life Mortgage is a mortgage with a set term duration, for customers aged 50+. Where you opt for this type of interest mortgage you’ll make interest payments monthly.
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The key difference between a Later Life Mortgage and a Retirement Interest Only is that you can include earned income as well as current or future retirement income. In addition, the mortgage comes with a set term when the mortgage has to end, normally aged 80. The lender will make a call on whether any earned income is sustainable before deciding whether to take it into account.

These mortgages can take both applicants’ income into account if you are applying as a couple. Finally, there must be sufficient means to repay the mortgage at the end of the term. This could be:

  • Sale of your property when you downsize.
  • Sale of other property that you own.
  • Sale or maturity of your investments, including any endowments or lump sums you’re entitled to when taking your pension.
You can choose one, or a combination, of the repayment options above. The cost of any investment being used as a repayment strategy may be taken into account when assessing affordability.
You can choose one, or a combination, of the repayment options above. The cost of any investment being used as a repayment strategy may be taken into account when assessing affordability.
Generally these mortgages are taken on an interest only basis but you can take them on a repayment basis. The lender will however assess your ability to afford the mortgage and may require you to take this on an interest only basis if they feel that a repayment mortgage is unaffordable.
Where you opt for a repayment mortgage, you’ll have repaid your mortgage at the end of the term as long as you make all of the required repayments.

Standard Mortgages

Equity release couple

Retirement Interest Only

Interest only retired couple

Term Interest Only

Equity release to buy boat

Equity Release

Buy to let mortgage flats

Buy to Let