Rollover Mortgage

Rollover Mortgage

A mortgage that automatically refinances at a new interest rate every few years. The new interest rate causes payments to go either up or down. This entails risk for both the borrower and the lender as neither can predict future directions of interest rates. A rollover mortgages behaves much like an adjustable-rate mortgage (ARM). The primary difference is that a rollover mortgage requires a new loan, while an ARM simply changes the rate.
References in periodicals archive ?
The society launched its innovative Rollover Mortgage to help those coming to the end of their mortgage as well as promoting its Offset Plus facility, which allows family members to help first-time buyers onto the ladder by offsetting their own savings.
From Yorkshire BS, the new Rollover Mortgage is for a group of borrowers often ignored - people nearing the end of their mortgage and needing to borrow less than 35% of the value of their home.
Yorkshire Building Society believes its Rollover Mortgage is the first loan that is specifically aimed at people who are in the final years of their mortgage term.