Why might you need a mortgage when you're older? The amount you can borrow will be based upon an affordability assessment, looking at your income and outgoings to make sure you can keep up repayments once your only sources of income are from pensions, savings or investments, and not employment. There will be other requirements, too, such as a minimum property value, minimum income and minimum loan size. If you're borrowing on an interest-only basis, you're likely to be able to borrow less than if you get a deal where you also pay down the loan.įor example, you might be able to borrow 50% of the value of your property on an interest-only basis, or 65% on a capital repayment basis. How much can I borrow with a retirement interest-only mortgage?Įach lender has different limits on how much you can borrow against your property. We do not allow this relationship to affect our editorial independence. If you click on the link and complete a mortgage with L&C Mortgages, L&C is paid a commission by the lender and will share part of this fee with Which? Ltd helping fund our not-for-profit mission. Mortgage broking service provided by L&C Mortgages This will cut down the size of your loan over time, meaning that more of your property can be passed onto your loved ones. Some retirement interest-only mortgages allow you to repay some capital as well as interest. Rather than the onerous steps you have to take to prove your income with a standard residential mortgage, you only have to prove that you can afford the interest. But some retirement-interest only mortgages carry terms like a regular mortgage, meaning you either pay them back after a set number of years or when you reach a certain age - 90, for example. With most RIO mortgages, you only repay the loan when you sell your property, move into residential care or die. RIOs are very similar to standard interest-only mortgages but there are some key differences. They allow you to borrow against your property and only pay back the interest (and not the loan itself) each month. Retirement-interest only mortgages (RIOs) are a relatively new set of products designed to help older borrowers who may struggle to get a standard residential mortgage. If your income is not paid into your account, you can use a photo or PDF of a payslip, social welfare receipt, your most recent pension statement or tax certificate.What is a retirement interest-only mortgage (RIO)? These documents, which must include tax returns and Revenue acceptance forms, can be obtained from your accountant or from Revenue. If you are self employed, you can use your tax assessment forms for the last two years. Bank statements can be downloaded as a PDF from all bank websites, on all devices. To verify your income we need to see your most recent personal bank statements for the account that your income is paid into. Please ensure the image is not blurry so we can verify your address. When taking a photo of your proof of address, we need to see the full page clearly.
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