Retirement mortgages are starting to appear on the market as the Treasury is set to give its backing after saying there is “considerable merit” in helping the elderly keep their homes.
Standard repayment mortgages require homeowners to build up equity but these new retirement mortgages will only require the interest on the loan to be paid. This allows the homeowner to maintain existing equity.
Nationwide is the latest building society to enter this market after the FCA published a paper last year criticising lenders who would not lend to older people.
We would always advise speaking to an expert before taking out any mortgage.