![]() ![]() ![]() We’ll check the ownership of the property and assess its value. Property details, confirmation of ownership, evidence of the amount of any mortgage debt To back an interest-only mortgage, we can use a maximum of 25% of the latest value provided that this is greater than £1m Unit trusts, open-ended investment companies (UK)Ĭopy of latest statement dated within last 12 months. We’ll accept up to 80% of the latest valuation of the stocks and shares, ISA, OEIC or investment bond (provided that the latest value if greater than £50,000)Ĭopy of latest statement dated within the last 12 months We allow up to 100% of the projected amount using the middle figures.Ĭopy of share certificates, nominee account statement or confirmation from a recognised broker containing evidence of share holdings and their valuation Acceptable typesĬopy of latest projection statement dated within last 12 months.Įndowment companies will present three growth rates. This table sets out the repayment plans we currently accept which may change in the future.Īll evidence must be given on letter headed paper, from your repayment plan provider. When you apply, we’ll ask you to show us the repayment plan(s) that should provide enough money to repay everything you owe by the end of the mortgage term.įrom time to time, we may ask you to show us that your repayment plan(s) remains on track to repay the mortgage. With an interest-only mortgage, you will need to know from the start how you are going to find a lump sum to repay the loan at the end of the mortgage term. (Please note these limits change from time to time but were correct at January 2016.) Interest- only mortgages are only available when the amount of loan is less than 75% of our latest valuation of the property. This means that although your monthly payments will be less than if you had a repayment mortgage at the end of the mortgage you’ll still owe the amount you borrowed.The total cost of an interest-only mortgage will be higher because you will be paying interest on the full loan amount throughout the mortgage term. If you are still working, but planning on retiring soon, you may need to show evidence of both your current income and what you’ll have when you’ve retired.With an interest-only mortgage, your monthly payment pays only the interest charges on your loan – you don’t pay off any of the loan amount and won’t be reducing the loan. When considering your application, your mortgage provider will need to see evidence of your retirement income.įor workplace pensions, you’ll need to provide a pension forecast or annuity statement, as well as a statement for your State Pension. Make your lender aware of all of these income types when you want to apply. Any other income from property or investments.Any weekly or monthly state pension payment.To calculate your retirement income, work out your: Retirement income is the name given to money you have coming in after you have retired. This often depends on your retirement income. You might also be able to arrange a new mortgage, even after retirement. Some lenders will let you to take out a mortgage that you’ll still be repaying after you have retired. Whether you’re buying a new house at 25 or 65, your lender will want to know that you can repay the mortgage in full. ![]()
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