As you will doubtless already know, interest only mortgages have become dramatically scarcer over the last year. However, this kind of financial plan remain available in some forms, and equity release is perhaps the best-known of these.
If you are approaching your senior years, you may well be considering supplementing your pension funds with a product such as the Halifax Retirement Home Plan. This kind of scheme is directed specifically at the older generation, and it is a means by which retired pensioners might increase their finances and live more comfortably.
If you are over a certain age and you have no mortgage payments outstanding on your house, the chances are good that you are eligible for an equity release scheme. This kind of financial product allows you to access the funds tied up in your home, without having to vacate the property as you would need to if you sold it.
While some of the plans of this type do not require you to make any monthly repayments, it is possible to take out a policy in which you gradually pay off only the interest that accumulates on the loan. This has the advantage of keeping the value of the loan consistent over the years, thus decreasing the risk of the borrowed amount exceeding the value of your home.
Interest only policies have largely disappeared from today's financial market, however you will still find this kind of scheme at work in the field of equity release.