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Borrowing in later life solutions are designed to support older customers who are established home-owners with a stable income.
If you’re over 55 years old, you will have a range of different choices available to suit your borrowing needs. Melton Mortgage Solutions advisers will take care to fully assess your personal circumstances and lending requirements in order to make a recommendation tailored for you.
You may be looking to either improve your mortgage deal or perhaps use the equity in your home to borrow more money for a variety of purposes. You may also be on an interest only mortgage and coming to the end of your mortgage term but do not wish to redeem the capital balance at this stage.
You can take out a standard mortgage as part of later life lending options. These mortgages will have a set mortgage term, and can be on a capital repayment or an interest-only basis. If on an interest-only basis you would need to repay the capital on expiry of the mortgage term.
Retirement Interest Only (RIO) mortgages are an alternative to traditional mortgages for older customers who either want to extend their standard interest only mortgage, or make the most of the equity they have built up in their homes, for example to help their children get on the property ladder or take the holiday of a lifetime. A RIO mortgage helps older borrowers with an alternative way of raising funds without selling your home or having to make large monthly capital repayments.
RIO mortgages are available to those over the age of 55 and who have a reliable income that will allow them to make payments now and in the future. You will be able to borrow up to 40% of the value of your home as a cash lump sum and will be charged interest only on the loan.
Unlike standard interest-only mortgages there is no set end date for settlement of the loan, borrowers pay monthly mortgage interest until they sell their house, go into long-term care, or pass away. At this point the loan is repaid by selling the house.
Some lenders accept private and state pension income, feasible self-employed and employed income, together with some investment income
If you’re interested in finding out more about a RIO mortgage, Melton Mortgage Solutions advisers can help you. Simply call 01664 494100 click get started.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed