Do you have an existing interest only mortgage?
Are you looking at selling your property as a means of repaying your mortgage in the future?
Looking for an option to review your monthly payments?
Here at the Marsden, we have a range of options available to customers who have existing interest only mortgages and are either in retirement or approaching it and are not sure what their options are for a mortgage.
Firstly, what is an interest only mortgage?
With an interest only mortgage you will only make payments towards the amount of interest on your mortgage. You will still owe the amount you borrowed at the end of the term and you will need to have clear plans in place as to how you intend to pay off the mortgage at the end of your term that meet with our credit guidelines.
What if my mortgage is part and part?
Some customers choose to split their mortgage repayment methods between interest only and repayment (some may know this as capital and interest) meaning you will repay part of your mortgage as interest only and part of it as repayment. As you approach the end of your term for this type of mortgage, you will still have a balance outstanding representing the amount on interest only but you will have reduced your overall mortgage balance.
Interest Only Mortgages in Retirement, what are my options?
There are a growing number of interest only accounts due to end across 2018, 2019 and 2020 and some customers are finding that as they approach this, their existing lender may not be willing to support them with an ongoing interest only mortgage.
Marsden Building Society can help support these interest only mortgage scenarios by…
- We have no maximum age limit and can support you with a mortgage in or into retirement whether you’re over 55, 60, 65 or 70+. (Note: only one of the applicants needs to be over the age of 55)
- We will accept sale of property as an acceptable way to repay your mortgage and can use it to repay when you choose what to do at the end of the term
- Interest only mortgages available up to 60% of your property value
- We accept pension income to support mortgage affordability
- You can choose either interest only, repayment or part and part repayment options.