A retirement interest-only mortgage is only available on your main residence and is very similar to a standard interest-only mortgage, with two key differences.
- The loan is usually only paid off when you die, move into long term care or sell the house.
- You only have to prove you can afford the monthly interest repayments.
While there’s no minimum age requirement, retirement interest-only mortgages are generally aimed at older borrowers, such as the over 55s, over 60s and pensioners who might find them easier to qualify for than a typical interest-only mortgage.
In this way, they’re similar to types of equity release schemes like a lifetime mortgage, where you pay off your debt when you die or move into long-term care.