Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
April Mortgages Launches Interest Only+ for Over 50s
April Mortgages has launched a new mortgage product, Interest Only+, specifically aimed at borrowers over the age of 50. The product features a minimum application income of £24,000, no minimum equity requirement, and no maximum age at the end of the mortgage term for sole applicants.
Interest Only+ is available with five-, 10-, and 15-year fixed rates. The product accepts a range of retirement income sources for clients over 50, including State Pension, private and workplace pensions, and Pension Credit. Additionally, it can consider 4% of the pension pot as annual income.
For sole applicants, there is no maximum age at the end of the mortgage term. Affordability for Interest Only and Part & Part mortgages will now be assessed on an Interest Only and Part & Part basis, rather than on a capital repayment basis.
This product may be relevant to letting agents and inventory clerks working with older clients who are seeking flexible mortgage options in later life.
Source: Mortgage Strategy