Retirement mortgage (Non Power of Attorney) 1.35% discount for life

This Retirement Interest Only mortgage is for over 55's looking to remortgage, release equity or borrow with no upper age limit.

  • Affordability calculator Want to know if you can afford this mortgage?

    Gross annual income

    Mortgage details

    This is the maximum amount based on the information you provided. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

Our Retirement mortgages are aimed to meet the needs of older borrowers who are either looking to release equity, remortgage with us because your current lender has an age limit or move home. This mortgage has no set end date, so you can have the peace of mind that your mortgage term isn’t coming to an end. 

The mortgage will be repaid from the sale of your home when you (or, for joint mortgages, each of you) die or move into sheltered accommodation or residential care or live with a family member in another property. During the term of the mortgage the borrower(s) is responsible for meeting the monthly payments which will be on an interest only basis.

The minimum age for this product is 55, and you must have a source of income; typically from a pension, so that interest payments are affordable for the term of the mortgage which may be up to the end of your life.

The Society can lend a minimum of £50,000 and up to a maximum of £500,000. The amount you can borrow will depend upon your needs and your ability to repay the interest each month. Our Advisers will conduct an assessment of your income and expenditure so as to guide you on how much the Society may be able to lend to you.

The Society can lend up to 50% of your property’s value, which will be confirmed by a professional property valuation.

The Society will require that anyone considering this product take independent legal and financial advice before entering into the mortgage contract.

Interest
rate i
SVR (standard variable rate) i Overall cost for comparison i Max %
LTV i
Payment
typei
3.55% 4.9% 3.7% APRC 50% Interest only
  • See example

    Representative example: A mortgage of £100,000 taken out for a period of 17 years on an interest only basis.

    Monthly instalments: £295.83 per month for 203 months.

    Total amount payable: £161,207.49

    Total amount of credit: £100,000

    The total amount payable includes administration fee £125, valuation fee £255, product fee £599, completion fee £75 and closing fee £100.

    The overall cost for comparison is 3.7% representative APRC.

    This example relates to the Retirement mortgage (Non Power of Attorney) product, is based on a typical mortgage and assumes that fees are not added to the mortgage. Please ask for a personalised illustration for your own particular requirements.

  • Availability - Purchase & Remortgage up to 50% Loan To Value (LTV).
  • Flexibility - Unlimited overpayments allowed in each calendar year without penalty.
  • Portable.

None. Closing Administration Fee (currently £100).

  • Product Fee 0.4% of advance (Minimum £599).
  • Administration Fee £125.
  • Valuation Fee (scale).
  • Completion Fee £75.

Lending Criteria and Information

Loan:

Size: Minimum £50,000, Maximum £500,000, up to 50% of the property value.

Term: Minimum 5 years.

Property:

Minimum Value: £100,000.  Available on properties in England and Wales.

Applicant:

Minimum age is 55.

Income:

Household income must be at least £20,000 after deductions.

The amount we will lend will depend on the value of the property and a calculation based on income and expenditure. As a guide, we will take gross annual income and then apply a deduction for the annual amount paid towards any existing debts or other financial commitments. We apply the following multipliers to the amount remaining:

Income After Deductions

Sole Borrower

Joint Borrowers

£20,000-£50,000

4.25x

4.25x

Over £50,0000

4.5x

4.5x

These multiples are for guidance only and do not guarantee that we will lend the amount indicated. We will carry out a full assessment of your clients income and expenditure to ensure that they can afford the mortgage both now and in the future.

Underwriting:

We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for the case will depend on your clients circumstances and our assessment of the risk.

 

How to apply

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