Longer mortgage deals for retirees

HOMEOWNERS looking for a mortgage in retirement now have more choice of fixed rates.

Leeds and Nottingham Building Societies have both launched longer retirement interest-only deals for borrowers over 55. The loan does not have to be repaid until the house is sold or the homeowner dies or moves into care.

Leeds Building Society is offering a ten-year fixed rate, the longest deal in the market, for borrowers with a 45 pc deposit. At 3.99 pc on an interest-only mortgage of £150,000 the monthly repayments would be £498.

Nottingham Building Society has launched a seven-year fixed rate for borrowers with a 60 pc deposit.

At 3.85 pc on a mortgage of £150,000, the interest-only monthly repayments would be £481.