Mortgage options for borrowers in later life can be limited, which posed a problem for one of my clients who was selling their family home at the age of 70 following a divorce.
This customer needed to offload their property to give half of the equity to his ex-wife, and also take out a £100,000 interest-only mortgage to buy a retirement flat.
A retirement interest-only (RIO) mortgage was the only option that would fit the client’s needs due to their age, but these are niche products that can be hard to secure. Luckily I happen to specialise in this area and was able to find seven willing lenders.
Choosing the right provider was essential here as some lenders place additional restrictions on RIO mortgages. Newcastle Building Society, for instance, informed me that they would only be willing to lend if the property was in Cumbria, which was not the case.
Through my extensive industry contacts, I found a home for this client at Beverley Building Society, who were happy to offer a RIO under these circumstances.
All clients' names and personal information have been excluded from these case studies to maintain their anonymity