Interest Only Mortgages

If you have a good retirement income with a sufficient monthly disposable income, you may be better off considering an interest only mortgage.  However high street lenders providing traditional mortgages are somewhat limited in providing interest only mortgages to applicants in retirement.  Some specialist building societies, and Equity Release providers may be able to help.

Summary

These schemes enable you to raise a lump sum from your property. They are similar to a conventional mortgage as you choose to repay the interest charged each month.

The term can be fixed at the outset to tie in with your retirement plans.


As you have chosen to make monthly payments, the balance will therefore remain the constant throughout the term of the plan.

Advantages

  • If you retire early, you can use these plans to delay the ‘roll-up’ effect until later in life
  • Greater choice of products as we also have access to the whole of the mainstream mortgage market
  • A fixed rate can be selected over a number of years to coincide with retirement plans
  • The balance will remain at the same level throughout the term
  • Beneficiaries will know the exact amount to be repaid to the lender at the end of the plan

 

Disadvantages

  • Some schemes will rely on your income to determine the initial amount borrowed
  • You need to keep up the future monthly repayments for the plan term
  • Your future income levels may change & repayment difficulties may arise
  • Loss of a partner, may result in having to make repayments from your own income


This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

Copyright © 2018 Quartz Financial Services Limited. All Rights Reserved

VouchedFor rating and reviews for Melinda Bush, Dartford

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Quartz Financial Services Ltd is an appointed representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority Number 460421.

Registered Office 1st Floor Princess Caroline House, 1 High Street, Southend on Sea, Essex, SS1 1JE.

A typical fee for arranging your mortgage is £595, however, a fee of up to 1% of the mortgage amount may be charged.

Quartz Financial Services Limited, registered in England & Wales No. 09497195. Registered Office: The Base Dartford Business Park, Victoria Road, Dartford, Kent DA1 5FS. Telephone 01474 887948.  Financial Conduct Authority Number 591061.

To view our Privacy Statement please click here.

This site is only directed at persons within the UK. Calls may be recorded for training and monitoring.