EXCLUSIVE: April Mortgages enhances Interest Only, adds options for over-50s
The lender will accept income including State Pension, private and workplace pensions and Pension Credit.
April Mortgages has launched an enhanced interest-only proposition for borrowers aged over 50, with no maximum age at the end of the mortgage term for sole applicants.
Interest Only+ introduces a £24,000 minimum application income for over-50s and no minimum equity requirement, alongside broader acceptance of retirement income.
The lender will accept income including State Pension, private and workplace pensions and Pension Credit, while 4% of a pension pot can also be considered as annual income.
April has also changed its affordability assessment across the Interest Only+ proposition.
Interest Only applications will now be assessed on an Interest Only basis, while Part & Part applications will be assessed on a Part & Part basis, rather than both being assessed on a capital repayment basis.
The lender said the changes could provide a mainstream mortgage option for older borrowers who might otherwise need to consider specialist later-life products such as Retirement Interest Only (RIO) or Equity Release.
Interest Only+ is available across April’s 5-, 10- and 15-year fixed rates and includes unlimited overpayments and automatic rate reductions as loan-to-value improves.
There are also no early repayment charges (ERCs) when moving home or repaying from the client’s own funds.
The proposition can be used by eligible older borrowers looking to remortgage, raise capital, support family members or manage their finances through retirement.
James Pagan (pictured), director of product, portfolio and operations at April Mortgages, said: “Being over 50 doesn’t mean borrowing needs disappear.
“Yet for many older borrowers, the range of mainstream mortgage options can narrow significantly as they approach or enter retirement.
“With Interest Only+, we want to give advisors another option to consider.
“A £24,000 minimum income for over 50s, broader acceptance of pension income and no maximum age at the end of term for sole applicants mean we can look at cases that may previously have needed to move towards specialist later-life lending.
“We’ve combined that with 5, 10 and 15-year fixed rates and the flexibility that comes as standard with an April mortgage.
“It’s a modern approach to Interest Only lending that gives advisors more ways to help their clients.”
Related
April Mortgages expands options for over-50 borrowers
Key Group expands later life advice service across mortgage options
TMG Mortgage Network adds Gable Mortgages to lender panel
Air and Mortgage Brain partner to support holistic later life lending advice
Equity Release Council and AMI to host Later Life Lending Summit North
Family Building Society launches HNW interest roll-up mortgage
63% of later life clients borrow to help family members, research finds
LiveMore launches unlimited overpayments and increases LTVs
Together joins the Equity Release Council to support greater choice in later life lending
Housing wealth should form part of mainstream retirement planning – Fairer Finance
Gable Mortgages launches 100% LTV mortgage range
