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 only mortgage you’ll make payments to cover the interest each month.
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 decide 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.