Interest rates are fixed for life, with no affordability check, no payments required and no end date to the mortgage (it becomes payable on surviving applicants death or moving into residential care).
There are many different options available:
- Interest can be served without penalty, thus stopping the debt from growing just like a normal interest only mortgage
- You can even make payments to start reducing the debt owed which can mitigate or avoid roll up of the balance outstanding
- Early redemption penalties vary on the amount owed depending on which scheme is ultimately available
- All products are transferable subject to meeting criteria on the new property
No Negative Equity Guarantee
For later life mortgages the risk is treated the same as a standard mortgage. Our Retirement Interest Only and Equity Release plans offer No Negative Equity Guarantee, which means if the debt rolled up is more than the property value, there is no further liability.