Retirement Interest Only mortgages are designed for borrowing in later life. They were introduced by the Financial Conduct Authority to help people who have an Interest Only mortgage that has come to an end but don’t have the capital to repay the original loan. If you want to live in the property and it’s affordable, you can refinance under this product structure and continue paying interest for the lifetime of the mortgage.
The loan has no end date and is repaid when the mortgage holder moves into care or dies.
Retirement Interest Only mortgages are of particular interest to those who do not want an Equity Release mortgage where the interest costs roll up.
Equity Release Plan will reduce the value of your estate and can affect your eligibility for means tested benefits.
Your home may be repossessed if you do not keep up repayments on your mortgage.