Retirement interest-only mortgages - can I do this?

Tractorboyt43

Hi,

I am 59 and may need to look for a property to buy in the not too distant future. I do not have a mortgage, any loans outstanding, and I am currently semi-retired and plan to retire fully in the next few months.

I have seen online that there are retirement interest-only mortgages now available and I would like to know if a scenario I’m thinking of would be possible. Basically, I’d like to buy a property for around £225k, use £150k of my own funds and have the remaining amount of £75k as a retirement interest-only mortgage. My income level would be more than adequate to pay the interest payments.

Is it possible to do this?

I’ve searched online to try and find an answer that mirrors my situation but haven’t really been able to so I’m wondering if I’ve misinterpreted how these types of mortgages work. If anyone is able to provide any guidance/clarification I would be very grateful. 

MWT

Possible, yes, but you should check one of the affordability calculators on the net to see if your retirement income is likely to be sufficient as the lenders have a different perspective on what is actually affordable:

Here is one example...

https://www.legalandgeneral.com/retirement/retirement-interest-only-mortgage/