Interest Only Mortgage

If you have a good retirement income with a sufficient monthly disposable income, you may be better off considering an interest only mortgage.

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 lifeGreater choice of products as we also have access to the whole of the mainstream mortgage marketA fixed rate can be selected over a number of years to coincide with retirement plansThe balance will remain at the same level throughout the termBeneficiaries 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 borrowedYou need to keep up the future monthly repayments for the plan termYour future income levels may change & repayment difficulties may ariseLoss of a partner, may result in having to make repayments from your own income

 

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