What Are The Best Interest Only Lifetime Mortgage Interest Rates?
Lifetime mortgage interest rates for mortgages in retirement can vary dependent upon the nature of the schemes involved. By this we mean the traditional mortgage way of lending involving verification of income, can offer rates as low as 4.75% (5.10% representative APR). This scheme is the Hodge Retirement Mortgage which will need proof of income under the rules governing affordability and MMR (Mortgage Market Review) which was imposed in April 2014. This offers a 5 year fixed rate deal which can then be renegotiated.
The next rung of the lifetime interest only mortgage interest rate league come the likes of Stonehaven and More2life with their range of Interest Select & Interest Choice plans. These types of interest only lifetime mortgages do offer fixed interest rates for life with monthly repayments starting from 5.94% (6.35% representative APR). Stonehaven do offer a series of tiered equity release interest rates for their Interest Select range which will cater for both the lower end of the loan-to-value range to get the best equity release interest rate, but also upto a higher maximum lending amount for those needing a greater release & prepared to pay a higher interest rate as a consequence.
Finally, we have the voluntary repayment schemes which albeit aren’t set up as interest only mortgage solutions, can be geared towards repayment of the interest and capital if desired. Both Aviva & Hodge Lifetime offer such Flexible equity release plans where upto 10% of the initial capital borrowed can be repaid without any early repayment charges. Rates on the Aviva Flexi plan can be as low as 5.63% (5.83% representative APR) & rise to over 7% dependent upon the amount borrowed against the property valuation.
Therefore, the best interest only lifetime mortgage interest rates are not just the lowest available, but whether the scheme actual fits the requirements of the retiree in repayment method, amount required & their attitude towards future interest rate changes.