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Enhanced Interest-Only

Over 50s

Over 50? Borrow up to 7x your income

With an Enhanced Interest-Only mortgage, your age needn't restrict your borrowing. Over 50s can borrow up to 7 times their income on an interest only basis, significantly boosting affordability while keeping monthly repayments low.

See if I'm eligible
British Bank awards 2023 Best Mortgage Broker winner
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Discover how much you can really borrow.

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Maximum 70% LTV

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Designed for over 50s

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Borrow up to 7x income

How does it work?

An Enhanced Interest-Only mortgage is a specialist loan designed to maximise affordability for older borrowers. Like with a Standard Interest-Only mortgage, you'll pay back the interest each month and none of the loan value. The key difference with an Enhanced Interest-Only mortgage is you can borrow up to 6-7x your income, significantly boosting your borrowing power.

Unlike other Retirement Interest-Only products, you'll choose a term, and will need to have a plan for what happens to the outstanding capital at the end of the term.

Check my eligibility

Things to consider

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What are the benefits?

Specifically designed for older borrowers

Unlike standard interest-only mortgage products, Enhanced Interest-Only is designed with older borrowers in mind. The maximum age at the end of the term is set to age 80, and all forms of income are accepted.

Borrow up to 7x income

With an Enhanced Interest-Only mortgage, you can significantly increase your borrowing. Whereas traditional mortgages allow you to borrow 4-4.5x income, this can provide a loan up to 6-7 times your income. Plus, many different income streams are accepted, including most pensions.

Lower your monthly costs

As you’re only paying off the interest each month, the repayments are usually lower than they would be with a capital repayment mortgage.

Flexible to your needs

You can use an Enhanced Interest-only mortgage to purchase a home or remortgage, with a minimum property value of £30,000. There are also options to port the mortgage should you need to downsize in the future, subject to eligibility and terms and conditions at the time of application.

Risks and considerations

You'll need to fix in a rate

Enhanced Interest-Only mortgages are only available with fixed rates. This means if you wanted to go for a variable rate option, you might need to consider alternatives like a Retirement Interest-Only mortgage or a standard interest-only.

You need a repayment plan

Unlike with a RIO, your Enhanced Interest-Only mortgage will have a set end date, so you'll need to have a plan of what happens at the end of your term - this is called a repayment vehicle.

You won't be paying off your loan

As you're only paying back the interest on the capital each month, your mortgage balance won't go down over time. This means you'll need to pay back the mortgage loan in full at the end of the term, or switch to a Retirement Interest-Only mortgage.

You could pay significantly more in interest

The amount of interest you pay is worked out as a percentage of your total loan balance. Because your debt size isn't reducing over time, the total interest you'll pay will be greater in comparison to a standard repayment, or part and part mortgage.

Fewer mortgage lenders to choose from

As a specialist mortgage product, you will have fewer providers to choose from when it comes to Enhanced Interest-Only mortgages. This means you might not be offered the best rates available across the market.

You need to meet minimum equity requirements

To meet eligibility requirements, you'll need to have between £116,000 and £325,000 equity in the property, depending on where you live in the UK. The minimum LTV for this product is 70%.

Why Tembo?

We help buyers, movers and homeowners discover how they could boost their affordability to get the mortgage they need. It’s why we’re voted the UK’s Best Mortgage Broker.

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Tried, tested, trusted.

The application process

4 simple steps to getting a Enhanced Interest-Only mortgage

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Make a Tembo recommendation

Create your own Tembo recommendation to discover live interest rates, monthly repayments and product explainers for all the mortgage schemes you're eligible for. After that, you'll be invited to book a free, no-obligation call with one of our award-winning team.

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Talk to a mortgage expert

We'll complete the qualification process, and help you understand which retirement or later-life products are best for you from our panel of lenders. After that, you'll work with a dedicated team: a CeMAP qualified mortgage advisor and a case manager.

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Apply for your new mortgage

Once you're happy with the product that's been recommended, your mortgage advisor will prepare and submit the mortgage application. Your case manager will act as the liaison between you, the lender and any solicitors to guide you to completion.

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Fee-free service for life

Once you've taken out a mortgage with Tembo, we offer fee-free advice on all your future remortgages. So you can rely on getting that same award-winning service, without paying a penny. We'll keep in touch as you approach the end of your fixed-term.

Other options you could consider

Explore the alternatives to an Enhanced Interest-Only mortgage below:

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Retirement

Retirement Interest-Only mortgage

Unlock money from your home or manage your finances in retirement with a Retirement Interest-Only mortgage.

See details

Remortgage

Part and part

Reduce your monthly costs by switching to a part interest, part repayment mortgage, while still chipping away at your loan.

See details

Remortgage

Standard interest-only

Reduce your monthly costs in the short term by changing to a standard interest-only mortgage.

See details

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