The Shawbrook 55 Plus Interest-Only Mortgage is designed to help homeowners over the age of 55 to access the equity in their property for a variety of reasons. One particularly identified by Shawbrook is for those interest-only mortgage prisoners, who are in the unfortunate position of having a maturing interest-only mortgage, with no repayment vehicle and a lender demanding repayment.
Here is where the 55+ Retirement Mortgage helps, as it enables suitable mortgagors the opportunity to remortgage away from their current lender onto a new interest-only plan with Shawbrook, over a fixed number of years. This buys the homeowners time to make a decision as to whether to continue down the interest-only route, or refinance at a later date with a lifetime mortgage. Therefore, if the decision has been made to remain in the property, rather than downsize, Shawbrook Bank offers a potential solution.
To be eligible for the Shawbrook 55+ Interest-Only Mortgage, the main earner must have a minimum income of £16,500 and be aged between 55 & 75 years at application. If there is a second applicant the can be below 55 years of age and the maximum age at expiry of the mortgage is 85 years of age. Income must be from either employment or self-employed, pension income, or have a pension fund that which can be utilised as drawdown or annuity to support the borrowings. Shawbrook use the assumption that retirement age is 70 for employed/self-employed income purposes.
Affordability is measured using an income multiplier of upto 4.5x income, subject to an overall maximum loan-to-value of 60% of the properties current valuation, which must be a minimum of £185,000. The property must be located within England, Wales or mainland Scotland and be the applicants main residence.
The minimum loan available on the 55+ Shawbrook Mortgage is £25,000, whilst the maximum loan is £1 million. This is all subject to there being at least £125,000 net equity remaining in the property once the loan has been released. Please call the Equity Release Supermarket team on 0800 802 1051 for your personalised Shawbrook 55 Plus Interest-Only Key Facts Illustration.