This is for illustrative purposes only and does not constitute as advice.
Mrs Murphy
Paying off an interest-only mortgage
Mrs Murphy after separating moved house aged 54 and took out an interest-only mortgage for 15 years to purchase her 2 bedroom property near the town centre with local buses available for when she grew older. She could not afford a repayment mortgage at the time but the property secured a home for her and her son on an interest-only basis.
Aged 69 she loves the property and would prefer not to downsize and move so her adviser arranged a lifetime mortgage at 30% ltv borrowing £75,000 allowing her to stay in the property. She agreed that she could afford to pay interest off each month rather than roll the interest up which means the level of borrowing will not increase over time and her son will therefore inherit the remaining 70% of the property plus any growth. A lender was chosen to allow this but with the flexibility that she could roll up the interest in later life if circumstances changed and the monthly interest was no longer affordable.
- Interest Paid Monthly
- Interest Fixed at Oustet
- Option to roll up interest if required
- Overpayments allowed subject to limits which will reduce debt owing
- No negative equity guarantee
- Any house price growth in value supports inheritance left to beneficiaries
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage. Some buy to let mortgages are not regulated by the Financial Conduct Authority.
Equity Release, Lifetime Mortgages & Home Reversion plans will reduce the value of your estate and can affect your eligibility for means tested benefits.
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Registered Address : 64 High Street, Broadstairs, Kent, England, CT10 1JT.
The guidance and/or information contained within this website is subject to the UK regulatory regime, and therefore targeted at consumers based in the UK.
Later Life Financial Advice is a trading style of Kent Financial Consultants Ltd which is an appointed representative of Quilter Financial Services Ltd, which is authorised and regulated by the Financial Conduct Authority. Quilter Financial Services Ltd is entered on the FCA register under reference 440718.
