Retirement mortgages
This article relates to retirement interest-only mortgages, a relatively new type of mortgage aimed a borrowers unable to repay interest only mortgages at the end of the term.
RETIREMENT PLANNING
Retirement interest-only mortgages were introduced in March 2018. They are an instrument to ease the cliff edge of those people who are at the end of their term of an interest only mortgage and unable to repay the capital. These are not the same as equity release or a lifetime mortgage and are regulated by the FCA under a new regulatory category of interest-only mortgage. It is defined as an interest only mortgage which is not an interest roll up mortgage and is restricted to older customers above a certain age as specified by the lender.
No repayment vehicle for the loan is required and the lender is not allowed to demand full repayment unless the borrower breaches the contractual terms of the loan. The contractual terms of the loan are determined by the lender and can include