Please make sure you complete the calculator as thoroughly as possible for an accurate result. Our affordability calculator will give you an idea of the amount you could borrow. What’s more, you can apply for a further loan against your property in the future. It’s also possible to still move home with a Retirement Interest Only Mortgage. You can repay more than just the interest on the loan to reduce how much you owe even further.
How flexible is a Retirement Interest Only Mortgage?. Any unpaid interest is added to the loan. This gives you the option to pay off some of the interest, but you don’t have to. If you’re not sure you can commit to this, consider the Optional Payment Lifetime Mortgage. This means the amount you owe doesn’t increase over time. How does this compare to the Optional Payment Lifetime Mortgage?Ī Retirement Interest Only Mortgage commits you to pay the interest each month. If you haven’t got an existing mortgage, you can still apply and use the money for something else. If you have an existing mortgage, you will need to use the Retirement Interest Only Mortgage to pay it off and you may have to pay an early repayment charge to your existing lender. What’s more, a Retirement Interest Only Mortgage doesn't have to be repaid until you die or permanently move into long-term care. What happens if I have an existing mortgage?Ī Retirement Interest Only Mortgage can be used to repay an existing mortgage. Based on your employed income (up to 8.5x) and/or retirement income (including retirement income yet to be earned) of lowest earner. The actual loan amount is determined by an affordability assessment up to a maximum of 60% of your property value. The minimum loan you can apply for is £10,000 and your property must be worth £70,000 or £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties. 
You should be confident you can pay the interest each month now and in the future. You should be 55 or over and living in, or buying your own home, in England, Wales or mainland Scotland. In other words, assuming it’s a property we would be happy to lend against, you can move home. The new home is subject to our usual lending criteria. So long as any overpayments don’t exceed our limits, there are no charges.
In this way, you’ll reduce how much you owe even further. If you want to pay off more than the interest due each month, you can make overpayments from time to time.
You can pay more to reduce how much you owe. The interest rate is fixed throughout so there are no surprises. If you take out the loan with someone else, the property isn’t sold until both of you have either died or moved permanently into long-term care. At this point, the property is sold and the loan repaid. 
It’s repaid on your death or when you move permanently into long-term care. You don't have to repay the loan on a specific date. In this way, you always know how much you owe.
#RETIREMENT INTEREST ONLY MORTGAGE CALCULATOR FULL#
The interest due is payable by you in full each month.
You can even pay off an existing mortgage. There are few restrictions on how you spend the money. If you give the money away, they may need to pay inheritance tax in the future. This includes home improvements, helping children buy their first property or supporting grandchildren with their education.
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