Longest term mortgage and reduce IHT - ideas?

[Deleted User]

MWT said:

Densol said:

MWT said:

Densol said:

 ... Id rather mine remains as high as it is, and I divert even more money to theirs. 

...So I don’t want an interest only mortgage but one whose term is stretched so far, the capital repayments are less so I can given even more to sons 

Why not an interest only mortgage?

That would seem to meet your needs rather well, as a RIO doesn't increase your equity, has no term limit, and takes the payments as low as possible?

In fact, subject to affordability you could even contemplate taking a RIO product and increasing the borrowing to provide the option of freeing up a larger amount of cash to help your sons now..

Well worth taking some professional advice though.

Many thanks for this. Well I read you need to earn more than £100k to get an interest only and also interest rates may be higher hence me thinking a longest stretch possible at the lowest rate.

A Retirement Interest Only (RIO) product is different...

As the product is based on the fact that you will not be obliged to repay the loan until you die or move into long term care, it is not subject to the same restrictions as someone younger would face when trying to obtain an interest only mortgage for a fixed term.

This still doesn't mean it is the right product for you, and you certainly need to take advice, but keep it in mind when you do talk about this matter with an advisor and ask if it might be part of your solution...

Thanks so much. Ive been looking at my existing lender - Nationwide and just extending the term ( and borrowing more ) up to age 85 - so 29 year term ( currently 19) . The normal mortgages seem to have the cheapest rates. Barclays lend way into retirement if income is guaranteed too - which mine is - guaranteed till I die. 

I’ll also keep getting more borrowing if I can as I pay more off - and keep giving it to my boys to keep that equity at the IHT level. 

The other two properties have 4.5 years till sale. With Covid, that should be long enough to get the tenants out ! Lol 
cheers