Yes, if it’s affordable for you and you pass criteria then you can get an interest only mortgage past retirement.
There are 3 main types of interest only mortgage:
Here we’ll explore the 3 types of interest only mortgage going past retirement age.
These are a good high-risk lending solution for affluent customers that have a plan in place to repay the loan such as from a private pension lump sum, an investment maturing, or sale of an asset past retirement.
Here are some key characteristics of an interest only mortgage customer.
Buy to let mortgages are assessed in a different way than traditional mortgages and it’s normal for an experienced landlord to have a buy to let interest only mortgage going past retirement.
With a buy to let, the monthly mortgage payment is made from the rental income received and the mortgage is usually repaid from the sale of the property in the future.
Often called a RIO, retirement interest only mortgages are available to customers over the age of 55 that have enough income to pay a monthly mortgage payment. There is no term, a RIO mortgage runs for your lifetime and can be in joint or sole names.
You’ll need to pass affordability checks similar than with a traditional mortgage, prove your current and future income can sustain the monthly interest payment, and meet lending criteria to qualify.
A RIO mortgage is usually repaid from the sale of the property when you or your surviving partner dies or goes into long term care, or from a remortgage to a lifetime mortgage product in your later years.
Interest only mortgages that run past your retirement date are classed as specialist lending products therefore, seeking trusted independent mortgage advice will prove invaluable. Mistakes can be costly and there may be better alternative products suitable for your needs.
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