A retirement interest only mortgage is a type of mortgage specifically designed for older homeowners who are retired and looking to release equity from their homes. With this type of mortgage, borrowers only pay the interest on the loan each month, with the capital repaid when the property is sold or when the borrower passes away.
In the case of a joint couple, both partners’ incomes can be taken into account when assessing affordability for the mortgage. Lenders will typically look at the total income of the couple to ensure that they have enough funds to cover the interest payments. This can include pensions, investments, annuities, and any other sources of income.
When considering survivorship income, lenders will also take into account what would happen if one of the partners were to pass away. In this situation, the surviving partner’s income may decrease, which could impact their ability to afford the mortgage payments. To account for this, lenders may require proof of survivorship income in order to assess whether the surviving partner would still be able to afford the mortgage on their own.
Overall, when applying for a retirement interest only mortgage as a joint couple, it is important to provide accurate information about both partners’ incomes and to consider how survivorship income could affect affordability in the future. It may also be useful to seek financial advice to ensure that the mortgage is suitable for your circumstances.
Mike Jones
Later Life Lending Specialist
Mike Jones is a later life lending specialist who is responsible for the “Mewstone Later Life Lending” service. Mike has years of experience in retail banking as well as extensive knowledge of the later life lending sector.
Choosing to release money from your home is a big decision and it’s important for you to understand all the options available to you. This means that he will always offer you unbiased advice. It doesn’t matter to us which solution or lender is recommend, as long as it is the right one for you.