An increasing number of lenders have been lining up to release a new wave of home loans that let older borrowers take out interest-only mortgages.
Retired borrowers can now remortgage their interest-only loan when it comes to an end – using the sale of their property as a means of repaying the debt.
This can be used to boost finances, pass money on to kids or grandchildren, or remortgage existing debt that cannot be repaid.
It’s always a good idea to seek independent financial advice when making such a big financial decision.
Crucially, retirement interest-only mortgages, or RIOs, can offer a lifeline to the thousands of older borrowers stuck in existing interest-only mortgages that are coming to the end of their terms.