Interest only mortgages dealt another blow
Press reports: “Over 40 too old for a mortgage” Mail & Telegraph, 14th July 2014
Santander reports: “Reduce maximum age at maturity for interest only mortgages down from 75 to 65 years of age”. Santander, 21 July 2014
Interest only equity release mortgages are in high demand… But why?
- 2.6 million interest only mortgages = 29.4%
- 640,000 maturing every year of which 49% have shortfall
- £56,200 is estimated to be average shortfall
- 26% say they will sell and down size leaving 74% at risk
We’re currently offering free advice for your clients, with interest only options NOW available.
Average house price in 1983= £28,623 now in 2013= £163,056 (Nationwide house price index 2012)
- 66% of over 55 year old own their home outright (Aviva spring 2014)
- 33% of all pensioners live on the state basic pension (Pension credit limit £148.35 single £226.50 Joint)
- 67% resent having to sell the house to pay for long term care. (just 2014)
North over view – 66% own house outright, with average house value of £196,990 and average mortgage £48,322.
South overview – 64.25% own house outright with average house value £306,643 and average mortgage £68,868