interest only mortgage retired

phoneguru1

hi i get my full state pension also i high pip award and i run a part time business from my home on my desktop pc ,,,i have many years of accounts i have a interest only mortgages with TMB which is £25.0000 i have to pay off off in dec this year… no bad credit at all . house is worth around £450,000 + looking to pay my old mortgage off and get another £25,000 to update kitchen bathroom etc , who is the absolute best for rates etc , and no hidden clauses or pitfalls , cheers in advance

ACG

A broker. And I say that as a broker who does not do this type of mortgage.

You are asking the wrong question. Which means you are likely to end up with the wrong answer. A broker will ask you the right questions to get the right answer and the best outcome for you.

MWT

Agreed, you need a broker who specialises in the various retirement products, then once the right product is identified for your particular needs you can look at the pros & cons of the different lenders.

ACG

Sorry, I have just read my reply. It makes me look right grumpy doesnt it.

I think its because I HATE it when I get a call asking for the lowest rate.

It dosnt take account of fees, fixed/variable, tie in period, any other requirements - these are the right questions.

I always say that any idiot (and I am not calling you an idiot btw) can find the cheapest rate - slightly different in your situation as you do not want a mainstream mortgage.

But you mention hidden pitfalls - taking out a rate of 2% with a £15k fee for a £50k mortgage would be a bit silly. But ultimately it answers your actual question, which is why I was saying you are asking the wrong questions. A broker will help you to figure out what you actually want because odds are that it wont be the cheapest rate.

MWT

Also plenty of different options with these types of product and while I wouldn't describe them as 'pitfalls' or 'hidden clauses', it is wise to get some help navigating those options to get the best fit for particular needs.

Some retirement products will require a monthly repayment, with others it can be optional.

Understanding the limits on the ability to pay down the mortgage and how that can vary over time is another difference.

Perhaps a retirement product is not even needed, or perhaps the home business is not sustainable for the future, all of these will make a difference when picking the correct product and a broker can help with that.