Mortgages for the over 50’s – A residential interest only mortgage for customers age 50-95.
- Mortgages for the over 50’s
- Interest only available
- Mortgages available to the age of 95
- 30 year mortgage terms available
- Downsizing of your home is an acceptable repayment strategy
Case study – The Smith’s
- Mr & Mrs Smith are aged 78 & 63 and are coming to the end of their interest only mortgage term.
- They want to borrow £80,000 on their property, to enable them to clear their existing mortgage and clear some unsecured borrowing.
- The property is currently valued at £240,000 and they want a mortgage term of 30 years.
- They have chosen downsizing as their preferred repayment strategy, as they wish to remain in their existing property for as long as they are able, in order to remain close to family.
- Both applicants are currently retired with Mr Smith in receipt of a full state pension and Mrs Smith due to receive a full state pension at 65.
- Additionally Mr & Mrs Smith are in receipt of private defined benefit pensions for £25,700 & £15,000 which both have spouse benefit of 50%.
- The 55+ mortgage could be offered for the loan amount requested providing them with the flexibility to continue interest only mortgage payments and to remain in their current property and remain around their family.
Why does this case work?
- Ages qualify because the youngest borrower is 63 so a term of 30 years takes them to 93 which is within the 55+ mortgage criteria age range (based on the youngest borrower).
- Downsizing is an acceptable strategy because there is more than £150K equity left in the property after the loan has been taken out.
- Affordability works because both Mr & Mrs Smith have a good amount of pension income from both state pension and defined pensions with a 50% spouses benefit meaning one could afford repayments in the event of their spouses demise.