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Interest Only Mortgage

The interest only mortgage available through equity release is similar to a standard interest only mortgage. You borrow an amount of money from a provider and you are required to pay back that loan in the future. In the meantime, you are required to make monthly payments to repay the interest on the loan.

There are, however, a couple of key differences.

The first is that the amount you can borrow is based on your age and the value of your home just like the other equity release plans.

The second is that if you reach a point where you are no longer able to make monthly payments, the plan can be switched into a regular lifetime mortgage where the interest is added to the total debt and no monthly payments are required.

We recommend that you speak with one of our specialist equity release advisers to find out more about how this plan works.

This is an equity release plan. To understand the features and risks, ask for a personalised illustration.