Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

April Mortgages Launches Interest-Only Product for Over-50s

April Mortgages has launched an interest-only mortgage aimed at borrowers over the age of 50. The new product is designed to broaden mortgage options for this age group before and into retirement.

The lender’s offering is available to applicants with a minimum income of £24,000 and does not require a minimum equity amount. For single applicants, there is no maximum age at the end of the mortgage term. Affordability for both interest-only and part-and-part mortgages will be assessed based on those specific repayment structures, rather than on a capital repayment basis.

April Mortgages states that this product provides older borrowers with alternatives to specialist later life products such as equity release or retirement interest-only (RIO) mortgages. The range is available on five-, ten-, and fifteen-year fixed rates, offering longer-term repayment certainty for those planning changes to income, pensions, or finances.

The product includes standard features available across all April Mortgages products, such as unlimited overpayments, automatic rate reductions when the loan-to-value (LTV) tier changes, and no early repayment charges when moving home or repaying from the client’s own funds.

The interest-only mortgage for over-50s will accept various forms of retirement income, including state pension, private and workplace pensions, and pension credit. April Mortgages can also consider 4% of the pension pot as annual income.

This development may be relevant to letting agents and inventory clerks working with older tenants or landlords who are seeking flexible mortgage solutions as they approach or enter retirement.