Interest-Only Remortgage Past Retirement Age Secured for a Fixed-Term Contractor

We recently managed to secure an an interest-only mortgage for our client, a 68-year-old professional working in the UK, approached FCA Authorised IMC Mortgage Brokers with a time-sensitive challenge. They held an interest-only residential mortgage with a remaining loan amount of £122,500 at a very low 25% Loan-to-Value (LTV).

With the full term of their mortgage expiring in just two years, the client faced a strict deadline. Their ultimate repayment strategy was to sell the property and relocate to their native country upon retirement. However, they did not want to be forced into selling within the next 24 months.

The Goal was to extend the interest-only mortgage term beyond the age of 70. This would allow the client to continue working, maximise their earnings in the UK, and eventually retire and sell the property entirely on their own terms.

Securing affordable later life mortgages can be incredibly complex due to strict high street lending criteria. In this specific scenario, our CeMAP accredited mortgage advisor Mark Phillips faced three major hurdles:

• Approaching Age Limits: The client was 68 and needed an interest-only mortgage that extended well past the standard state retirement age and beyond the threshold of 70.

• Employment Status: The client was employed on a fixed-term contract. Most traditional lenders view contract work as a higher risk, particularly for older borrowers nearing retirement.

• Imminent Rate Expiry: The client’s current mortgage deal was on the verge of expiring. If a solution wasn’t found quickly, they would revert to the lender’s Standard Variable Rate (SVR), causing their monthly payments to skyrocket.

This tailored solution provided the financial breathing room needed to avoid a premature property sale, allowing our client to maximise their UK earnings. As FCA-authorised residential mortgage experts, our team specialises in finding flexible, compliant pathways for complex scenarios. If you are approaching retirement or searching for a later-life interest-only mortgage extension, contact our qualified brokers today for trusted advice.

Leveraging deep industry relationships and expert knowledge of specialist criteria, IMC Mortgage Brokers went to work. Mark Phillips identified a specific high street lender known for its flexible approach to mortgages for older borrowers and contractor income. Instead of relying on automated algorithm decisions, Mark built a robust, manual case for the mortgage underwriters. To overcome the contract income obstacle, Mark gathered comprehensive evidence showing that the client’s fixed-term contract had been successfully renewed multiple times over a three-year period. This proved a consistent track record of sustainable income, successfully offsetting the lender’s risk.

By presenting a bulletproof case to the underwriter, IMC Mortgage Brokers achieved an exceptional result for the client:

• Term Extension Approved: The lender agreed to extend the interest-only term past the age of 70, successfully mitigating the risk of a forced property sale.

• Income Accepted: The underwriter fully accepted the fixed-term contract income based on the historical renewals demonstrated.

• Payment Protection: By acting swiftly before the existing deal expired, Mark protected the client from dropping onto a costly SVR. While the new interest rate was naturally higher due to prevailing market conditions, Mark structured the deal to minimise the term and overall interest cost.

IMC Mortgage Brokers successfully navigated the age-related restrictions that often bottleneck mature borrowers. We secured a new interest-only mortgage that safely extended the term well past the client’s 70th birthday, aligning perfectly with their planned retirement timeline.

Thanks to IMC Mortgage Brokers, the client can now enjoy several more years of successful contract work in the UK. They have gained complete financial peace of mind, knowing they can retire and return to their home country precisely when they are ready, not when a lender dictates.