Later life lending
We don't believe in a 'one size fits all' approach to lending and will always take the time to listen to those people who are not well served by the mass market, such as those approaching or in retirement.
We have helped many borrowers remain in their home by allowing them to have a mortgage with us well into their retirement. We have also helped interest-only borrowers, who have found themselves trapped on high interest rates. Your client should have the choice to downsize when they want, not when their current lender says they should.
What makes us different?
- We have a personal approach to lending and manually underwrite all our mortgages.
- We offer generous mortgage terms for older borrowers:
- Owner Occupier Repayment mortgages – up to a maximum age of 95 at the end of the term
- Owner Occupier interest only and Buy to Let mortgages – up to a maximum age of 89 when the loan commences
- We’ll take into account earned income up to the age of 70 and pension income beyond that.
- We can also accept rental and investment income that can be evidenced on an SA302.
Retirement Lifestyle Booster Mortgage
Our Retirement Lifestyle Booster Mortgage is aimed at older borrowers wanting to make the most of the money tied up in their home and seeking extra money each month for life's luxuries. It's available for borrowers aged 60 to 79 at age of application.
The Retirement Lifestyle Booster is a 10 year interest-only mortgage that is repaid with a lump sum at the end.
- Every month the Retirement Lifestyle Booster pays a fixed sum to the borrower. The same amount every month for up to 10 years.
- In return, the borrower pays us a set amount each month to cover the 'average' interest due.
- At the end of the 10 years, assuming all the payments have been made, what the borrower owes is what they have borrowed - no more and no less.
- The borrower then repays the loan by selling their house and moving somewhere less expensive, mortgage free, just like they planned to do anyway.
See how much your client could get each month with our Retirement Lifestyle Booster calculator.
For the latest product rates please visit our Retirement Lifestyle Booster product page.
How does this compare to a standard interest-only mortgage?
Compared with a standard interest-only mortgage there are two key differences:
1. The loan amount is paid out in monthly installments on the 10th day of each month. Same amount every month for 10 years unless your client tells us to stop it earlier. Any existing mortgage is repaid from the agreed loan at the start of the Retirement Lifestyle Booster, along with the optional lump sum.
2. Interest is charged on the balance outstanding each month, just like a normal mortgage. As the balance builds up, the amount of interest charged increases. What's different is that your client pays us an amount each month that covers the 'average' interest due over the 10 years of the loan. That's more than just the interest due in the early years (the excess reduces the balance on which interest is charged) and less in the later year
For further information please read our Retirement Lifestyle Booster brochure and our Retirement Lifestyle Booster important considerations flyer
Joint Mortgage Sole Owner (JMSO)
Our JMSO arrangement can also be an option for older borrowers. This arrangement is designed to enable family members to help support each other with affordability when applying for a mortgage, so older borrowers can be supported by their children's income. For more information please click here.
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