Geriatric Interest Only Mortgages

I just read that now older mortgage holders will be able to continually rent their home until around the time they move into an old folk’s home (or die).  Accordingly, Leeds’ Building Society has new INTEREST ONLY mortgages offered to borrowers aged 55 to 80.

Well – when your house could have earned more money than you have in your lifetime, why should you not just MEW be increase in price and continue the luxurious of mortgage usury?

The difference between MEWing and Geriatric Interest Only Mortgages is that MEWing is taking money out of your house – and spending it in cruises and home repairs, a new car or holiday abroad.  This Interest Only mortgage is you never paying off the mortgage, ever!

There’s been a lot of subtle marketing of equity release recently.  Proponents like SAGA think it’s great!

Prudence; like paying off your mortgage and not using your house as an ATM, is a bit old hat and instead, you should live permanently in debt.

The deal costs you £999 upfront and then an interest rate of around 3.5% – which would mean borrowing £100,000 now will cost you about £300 a month forever*  I think that it would be better to roll it up into a compound snowball of debt – but if you live long enough, your equity is destroyed and that’s what Equity Release is for

Who knows who’ll take you after your teaser rate is up?  But no doubt the government won’t let hard working homeowners suffer (or freeloading mortgage owners if you see the housing equity half full rather than half full).


If you plan to be renting your home from the bank until you are into your 80’s, you need to come up with a better plan in my opinion.  And the fact that so many people need this help out (because, remember the original mortgage term was 25 years when a 60 year old bought 30 years ago, meaning they should be mortgage free already).

The rise of equity release, geriatric interest only mortgages and the like is a symptom of a problem that is looming large on the horizon for millions of retirees – Asset Rich, Cash Poor, Massive Mortgage!


*Or until you die or move to an Altensilo to die there instead.


  1. I think I missed your Geriatric Interest Only Mortgage post the first time round because it’s something I would probably consider myself.

    I don’t own the property I live in so at some point into old age, I will likely still be renting or paying off a mortgage of some sort.

    With no dependents, the Geriatric IO Mortgage appeals to me – why not let the bank have the property when I pop my clogs?

    It’s an option that I can’t disregard completely. I need to work out what’s what but am putting it off.

    Liked by 1 person

    1. Weenie a geriatric? Surely not.
      My beef with these mortgages is that the “homeowners” have spent all the hard earned equity and sometimes have a mortgage worth more than their original purchase price.
      For some io is an option to make/save money but for these guys it’s just one more bet on house prices rising.


  2. Haha, not quite geriatric but it’s something to consider in the future.

    Am mindful that there will always be changes so perhaps there could be another type of mortgage to consider when the time comes. I have some equity in my BTL but while that would make a decent deposit, I’d still have to get a mortgage if I wanted to live somewhere decent.

    This will probably be the time I need to speak to a financial/mortgage adviser to see if it’s a viable option.


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