An interest only mortgage that allows downsizing as the repayment vehicle when the loan will be repaid in retirement.
Product Criteria
- Interest Only subject to sale & downsize of main UK residence as repayment strategy
- Minimum of £250,000 equity in property required – however £150,000 could be considered subject to due diligence around the proposal e.g., locality. Written confirmation of customer plan is required
- We can consider cases below this level on a discretionary basis if the property is in Northern England with suitable evidence.
- Examples of property available for downsizing to in planned retirement area required
- Evidence of retirement income required
- Minimum loan size £30,000
- Maximum loan size £3,000,000. Loans over this are priced on a bespoke basis and have restricted LTV’s
- Must not be more than 10 years from retirement
- Maximum term determined by ONS tables
The interest rate charged will not fall below 2.00% (the minimum interest rate) at any point during the mortgage.