retirement interest only mortgage calculator

#RETIREMENT INTEREST ONLY MORTGAGE CALCULATOR FULL#

#RETIREMENT INTEREST ONLY MORTGAGE CALCULATOR FULL#

As long as his mortgage payments are made in full and on time, he’ll own his home outright at the end of the new term.By discussing his current needs and circumstances, we were able to agree a monthly mortgage payment that Mr X was comfortable with.An alternative would have been to sell his home to repay the mortgage.One way to fund this would be to look for alternative borrowing, such as an unsecured loan.He’d need approximately £212,000 to repay his mortgage at the end of term.This solution, which was tailored to his needs, meant that monthly payments are a figure he’s comfortable with, and he now feels in control of his mortgage. He may pay more for his mortgage, however he’ll own his home outright at the end of the term To increase the term of his mortgage so it’s more affordable. To change from interest only to a repayment mortgage – although this increased his monthly payment, every mortgage payment he makes will reduce the amount he owes He had no way of repaying his total mortgage amount.Īfter discussions over the phone about his circumstances and current budget we recommended a solution that was right for him: Mr X said that although he regularly repays his interest only payments each month he was worried about what would happen when his mortgage came to an end. With no plans in place to pay his interest only mortgage, Mr X contacted one of our interest only specialists to discuss his circumstances and to try and find a solution.

We helped Mr X take control of his mortgage and plan to own his home at the end of the term. Not all the solutions suggested in this case study will suit everyone’s circumstances. We have removed their name and personal details to protect their privacy. The case study below is an example of how we have recently helped customers. Any concerns are easier to resolve the earlier you let us know. If you cannot sell your property for the value you expect, you may not be able to pay off your mortgage in full and may not have sufficient equity to purchase another property.Ĭall our UK based team and we’ll walk you through the options available to help.If you have decided that you will pay off your capital, at the end of your mortgage term, by selling your property, you should remember that the value of your house will depend on house prices at the time of sale.There is no charge to switch to a repayment mortgage if this is a suitable option for you. If your repayment plan is not on track, you need to take action now either to save more or switch to a repayment mortgage.We may contact you from time to time and ask you to show us that you’re in a position to pay off your mortgage at the end of the term.You should review your repayment plan on a regular basis to ensure that it remains on track.You will need to have a plan in place to repay your capital at the end of the mortgage term. This means your monthly payments don't pay off any of the amount you initially borrowed - instead, you pay the full amount back at the end of the mortgage term in one lump sum. With an interest-only mortgage your repayments only cover the interest on the amount you borrowed.

Retirement interest only mortgage calculator