Jump to section
Retirement Mortgages are aimed at older borrowers, usually over 55’s. A mortgage into retirement is similar to an average mortgage, with two key differences:
A retirement mortgage requires you to pass mortgage affordability checks and is based on your retirement income. This makes it generally more difficult to secure a mortgage for retirement with the best rates available, without professional financial advice.
Friends Capital can help you find the best retirement mortgage deal. We will review your personal circumstances and then search the entire market to ensure you get the best rates possible. Our advisors will then deal with all the paperwork, submit your mortgage application, liaise with your mortgage lender and solicitor, and ensure that your mortgage application is completed as quickly as possible. We can:
A retirement interest-only mortgage (RIO) is a way for older homeowners to borrow in retirement. Much like with a standard interest-only loan, borrowers only need to repay the interest rather than the capital – which can be a lot more achievable for those on a pension income. There’s usually no set repayment date; rather, when the borrower dies or goes into care, the house will be sold and the mortgage repaid, with any additional value in the house forming part of your estate.
A retirement mortgage is similar to types of equity release schemes like a lifetime mortgage, where you pay-off the original capital and possibly any interest when you die or move into long-term care. An Equity Release Mortgage will affect your inheritance and will beneficiaries, generally your immediate family and therefore requires specialist Equitry Release Mortgage advice, check that your advisor has the required Equity Release qualifications, and involve your family in the decision-making process.
With a lifetime mortgage you will either:
But, with a retirement interest-only mortgage, you only pay off the interest each month, so your monthly repayments will be lower.
This means you should be more likely to have something to pass on as an inheritance, or pay for long-term care.
Friends Capital have pre-existing relationships with lenders that welcome interest only mortgages. We can search the entire market and get access to the best and most exclusive deals available. Then we will choose the deal that are most appropriate to your personal circumstance. We can:
One of our friendly advisors will either call you back within 24 hours (usually the same working day), or will take details from you in order to best deal with your situation.
When you speak with us, we will take a ‘fact find’. At this stage we take basic details about your situation. We will then search the whole of the market and find you the best deal available.
If you are happy with the deal that we offer, we will then contact the lender for you and get you what is called a ‘decision in principal’.
If you’re happy with the decision in principal then we will secure this deal for you and deal with the application for you on your behalf.