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 introduced Interest Only+, an enhanced interest-only mortgage product aimed at borrowers over the age of 50. The new offering features a £24,000 minimum application income, no minimum equity requirement, and no maximum age at the end of the mortgage term for sole applicants.
Interest Only+ is available on five-, 10-, and 15-year fixed rates. The product accepts a range of retirement incomes 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.
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. According to April Mortgages, these changes are designed to make interest only mortgages accessible to a wider range of borrowers.
For letting agents and inventory clerks, the introduction of Interest Only+ may be relevant for older clients seeking flexible mortgage options, particularly those approaching or in retirement who may have previously faced limited choices in the mainstream market.
Source: Mortgage Strategy