Interest Only Mortgages
Most Equity Release lenders offer an interest-only option where you will get a lump sum and pay monthly interest on the loan, which can be fixed or variable, rather than allowing the interest to roll up. The amount you originally borrowed is normally repaid when your home is eventually sold.
But is it right for you?
This really depends on your age and circumstances, but before making any decision, consider;
- An interest-only mortgage with variable interest rates may not be suitable because the interest rate may rise faster than your income.
- If what you leave behind (inheritance) is a key consideration, it may not be suitable, as it will affect it.
- It may affect your tax position and entitlement to means-tested benefits.
- Lenders will expect you to keep your home in good condition and you may need to set aside some money to do this.
As with all Equity Release schemes it is very important to get advice on whether the scheme is right for you. Please talk to us to find out more and ensure you get the advice you need.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.