A MORTGAGE WITH NO PROOF OF INCOME REQUIRED AND ON AN INTEREST-ONLY BASIS! TOO GOOD TO BE TRUE?

Who would have thought that it would be the older people now who would enjoy the ability to take out a mortgage without proof of income and on an interest-only basis for an unlimited term of years! This is the latest refinement of the Lifetime Mortgage. The limit of borrowing in these cases is based

on age and property value.

Here is a sample of the maximum borrowing possible:

AGE      LOAN TO VALUE        MORTGAGE EXAMPLE (VALUE OF £200,000)

55                  21.0%                                £42,000

60                  26.0%                                £52,000

65                  31.0%                                £62,000

70                  36.0%                                £72,000

75                  41.0%                                £82,000

80                  46.0%                                £92,000

Note: Borrowing is based on age and percentage of value of the property with the youngest age being 55 and the property must be the person’s main residence. Where there is a couple, the calculations are done on the age of the youngest. This borrowing is for a first mortgage only and second mortgages are not permitted. It can be for a remortgage or a purchase.

The new developments for Lifetime Mortgages includes the option to make repayments of interest
up to 10% of the original amount borrowed without penalty. For some there are also now fixed early
redemption penalties, and no penalties at all after 10 years. Some Lifetime Mortgages also allow a
person to start with, or switch to, making no payments and letting the interest build up – to be repaid
on the eventual sale of the property.