Later life lending

What makes us different?

We've helped many borrowers remain in their home by allowing them to have a mortgage with us well into their retirement. We've also helped Interest-Only borrowers who have found themselves trapped on high interest rates. 

• 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, or even 75 if the client is in a non-manual role
• We can consider up to 90% of a pension pot or investment (split over the mortgage term), plus fixed pensions
  
• We can also accept rental income that can be evidenced on an SA302 and Limited Company director's salary/dividends.

Our normal lending criteria applies for older borrowers, so they can apply for any of our core product range with the same rates and same terms. 

Find out more about our Owner Occupier and Buy to Let product ranges.

If your client is looking for something outside of our core range, we do offer specialist products such as Joint Borrower Sole Proprietor and Retirement Interest-Only mortgages.

JOINT BORROWER SOLE PROPRIETOR (JBSP)

The arrangement allows family members to help each other with affordability when applying for a mortgage. Older borrowers can use the equity in their home to help their children or grandchildren onto, or up, the property ladder. Our same generous terms apply, so supporting borrowers can help their family well into retirement. Alternatively it can be used in reverse so that adult children can use their income to support their parents to enable them to stay in their home for longer. 

• Up to four incomes can be used for affordability - one or two borrowers (who will own and occupy the property) can be supported by up to two other family members
• Supporting family members will not be liable for stamp duty on a second home – they will be listed on the mortgage but will not own the property.

• Adult children helping their parents borrow in later life
• Parents, grandparents, siblings, aunts or uncles helping younger family members to buy their first home, step up the property ladder or help with renovations
• Couples with a Buy to Let property where the owning partner does not have sufficient income of their own.
• The maximum LTV is 80% for Owner Occupier and 75% for Buy to Let.

View our Owner Occupier JBSP products.

For Buy to Let applications, clients can use our JBSP arrangement with any of our core BtL products. 

RETIREMENT INTEREST ONLY (RIO)

Our RIO mortgages do not have a term end date, giving your clients the flexibility to enjoy their home until a specific life event, such as moving into long-term care or passing away, triggers the repayment of their mortgage.

• Available for clients aged 55 and over (for joint borrowers both clients must be 55 or older)
• Maximum LTV of 50%
• Borrowers must continue to make monthly payments for an undefined term.

 View more information about our Retirement Interest-Only product.

Check affordability and complete a DIP request 

Affordability Calculator    Owner Occupier DIP request

Ready to submit an application?

Owner Occupation application pack   Mortgage Hub

An introduction to later life lending

FIND OUT MORE

Check out our Education Hub!

Articles | Podcasts | Videos | Webinars

Case study - Later life mortgages

Warwick tells the story of the struggles he and his wife Lynda had in getting a new mortgage close to his retirement, and how we were able to help them.