Retirement interest-only mortgages and equity release are both types of mortgage that are specifically designed for the over 55s.
For retirement interest-only (RIO) mortgages, the monthly repayments you’ll be making will be paying off the interest, which means they are lower than a standard mortgage. This means that the level of income you’ll need to prove that you have will also be less.
Lenders may still want to see evidence of your income and may ask for any of the documents outlined above, but you might not need to provide as long a history. Of course, things will vary from lender to lender, so always make sure you check directly with your lender what they require. You can read more about RIO mortgages in our article How retirement interest-only mortgages work.
If you’re taking out an equity release plan, such as a lifetime mortgage or home reversion plan, then you won’t actually need to prove your income as you won’t be making monthly payments.
However, if you decide to take out a lifetime mortgage, you might choose to make monthly repayments against the accumulating interest, in which case, your lender may want to see proof of your income to determine how much you can pay. You can read more about the different types of equity release in our article Equity release – what is it and how does it work?
Before taking out an equity release plan, you’ll need to seek professional financial advice. You can find a local financial advisor on VouchedFor, the review website for financial advisors, or Unbiased, which connects users to advisors in their area, or for more information, check out our guides on How to find the right financial advisor for you