Interest only mortgage for life

groovy_granny_3

At present I have a Halifax discounted tracker variable mortgage for 28 years (I am 71) which when it started a year ago cost £160 p.month and is now £196 ( for £45,000) and will be more next month. Whilst I have a good pension and can afford this, how much higher can it go and will anyone give me a fixed rate on an interest only mortgage for so long? In January the penalty for leaving will be only about £200

Great site - find it fascinating

kjharve

groovy_granny wrote: »

At present I have a Halifax discounted tracker variable mortgage for 28 years (I am 71) which when it started a year ago cost £160 p.month and is now £196 ( for £45,000) and will be more next month. Whilst I have a good pension and can afford this, how much higher can it go and will anyone give me a fixed rate on an interest only mortgage for so long? In January the penalty for leaving will be only about £200

Great site - find it fascinating

Given your age, you'd be lucky to find many deals like this. Have you considered something like a Lifetime Mortgage? They're not for everybody but definitely have their place in the market.

The principle of a Lifetime Mortgage is that you don't actually make any payments but the interest acrues and on death the balance of the debt is taken from the estate. You can even do things like protect a proportion of your equity to ensure a decent inheritance for you beloveds.

This type of product is so heavily regulated these days and you normally get excellent service and advice as a result whether you go through an IFA or direct. My recommendation would be to always have a family member present during appointments though as this will affect them equally.

money_maker_3

Sounds like you already have a retirement home plan which is what halifax call their lifetime mortgages. the answer to your question is yes you can have a fixed rate on this but you will have to wait untill your existing racker is nearly up to change onto it as you would pay a penalty to change now. Branches no longer are allowed to do these types of mortgages now though, so a broker who can do a product transfer for you would be your best bet about 2 months before your tracker ends