Retirement Mortgages


Our Retirement Mortgages is aimed to meet the needs of older borrowers who are either looking to release equity, remortgage with us because their current lender has an age limit or move home.

The Retirement Mortgage will be repaid from the sale of the home when the borrower (or, for joint mortgages) 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 is responsible for meeting the monthly payments which will be on an interest only basis.

The minimum age for this product is 65, and they 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 their full lifetime.

The Society can lend a minimum of £50,000 and up to a maximum of £200,000. The amount that can be borrowed will depend upon their needs and ability to repay the interest each month.

The Society can lend up to 25% of the property’s value, which will be confirmed by a professional property valuation. As well as Bath and Bristol, we will also lend against property located in Dorset, Gloucestershire, Hampshire, Oxfordshire, Somerset or Wiltshire.

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

Product Name

The overall cost for
comparison is:

Rate structure based
on our Standard
Variable Rate

Availability

Flexibility

Fees

Early Repayment Charges

Residential
1.00%  Discount

RDD058

4.6% APRC

4.29% variable for the term Standard Variable
Rate, currently
5.29%.

Only available with Property and Financial Lasting Power of Attorney

Purchase &
Remortgage
up to 25% Loan To Value (LTV).

 

Unlimited overpayments allowed in each calendar year without penalty.
Portable.

  • Product Fee 0.4% of advance (Minimum £599)

  • Administration Fee £125

  • Valuation Fee (scale)

  • Completion Fee £75.

  • None

  • Closing Administration Fee (currently £100)

Residential
0.30%  Discount

RDD059

5.3% APRC

4.99% variable for the term Standard Variable
Rate, currently
5.29%.

Purchase &
Remortgage
up to 25% Loan To Value (LTV).

Unlimited overpayments allowed in each calendar year without penalty.
Portable.

  • Product Fee 0.4% of advance (Minimum £599)

  • Administration Fee £125

  • Valuation Fee (scale)

  • Completion Fee £75.

None

Closing Administration Fee (currently £100)

An example: A mortgage of £50,000 taken out over a period of 19 years on an interest only basis

Monthly instalments: £207.92 per month for 227 months

Total amount payable, including fees: £98,491.84

Total amount of credit: £50,000.

The total amount payable includes a product fee £599, valuation fee £245, administration fee £125, closing fee £100 and completion fee £75.

The example relates to Product Code RDD059, 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.

We have no current plans to withdraw these products but they may be withdrawn without notice.

Lending Criteria and Information

Loan:

Size: Minimum £50,000, Maximum £200,000, up to 25% of the property value

Term: Minimum 5 years

Property:

Minimum Value: £200,000.

Property must be located in Bath, Bristol, Dorset, Gloucestershire, Hampshire, Oxfordshire, Somerset or Wiltshire. 

Applicant:

Minimum age is 65

Income:

Household income must be at least £20,000.

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.

Procuration Fees:

We will pay an uncapped procuration fee of 0.35% of the amount borrowed to directly authorised and regulated intermediaries on completion of the mortgage. Where the intermediary is an Appointed Representative, the fee will be paid to the Principal. In the event of a change of Principal for any reason, the fee will be paid to the firm responsible for the information or advice at the time the sale was made.

Please contact the Mortgage Sales team to discuss your requirements by calling us on 01225 475702 or by email at intermediaries@bibs.co.uk