What is a Retirement mortgage?

Our Retirement mortgages are aimed to meet the unique needs of older borrowers that are either looking to release equity or move home. Instead of having a fixed end date, if necessary the amount borrowed can be paid back from the sale of the property when the borrower dies or moves into alternative accommodation such as long term care. During the term of the mortgage the borrower is responsible for meeting the monthly payments which can be interest only or capital & interest repayment.
 
Who is a Retirement mortgage potentially suitable for?

A Retirement mortgage may be suitable for you if:

  • you are moving house or remortgaging your existing house
  • you are over the age of 55
  • you will be over the age of 75 at the end of the mortgage term or wish to use the sale proceeds of your property, either on moving or on death, to repay your loan.

You must have a source of income, typically from a pension, so that interest payments can be afforded for the term of the mortgage which may be up to your full lifetime. You should consider whether your income is index linked so that you can be sure it will keep up with the cost of living over the term.
 
How much can I borrow?

The Society can lend a minimum of £25,000 and a maximum of £750,000. The amount you can borrow will depend upon your needs and your ability to repay the interest each month. Following an assessment of your income and expenditure our adviser will be able to guide you as to 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.

What is a Lasting Power of Attorney (LPA) and why is it important?

A Property and Financial Affairs Lasting Power of Attorney (LPA) is a legal tool that allows you to appoint someone to make decisions about your money and property on your behalf. The appointed person can manage your finances for you in the future if you reach a point where you are no longer able to make decisions for yourself.
 
The Society especially recommends that older borrowers take this type of LPA as this ensures the mortgage payments and other aspects of your finances can be easily dealt with by your family or other trusted representative in the event of you losing your mental capacity during your lifetime.

We apply a lower interest rate to the product where the applicant has an LPA as we believe these cases will be easier to manage over the life of the loan.
 
Legal Advice

The Society strongly recommends that anyone considering this product take independent legal and financial advice before entering into the mortgage contract.
 
For more information about our Retirement mortgage click here.
 
You may also find it beneficial to read the Building Society Association's 'Can I get a mortgage at my age?' guide.
 

Vernon Building Society
19 St Petersgate
Stockport
SK1 1HF

Tel: 0161 429 6262
Email: info@thevernon.co.uk

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

*The 'AER' stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Vernon Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (registration number 195475).  You can check this on the Financial Services Register. We are also a participant of the Financial Services Compensation Scheme (FSCS). Details of the scheme can be obtained from www.fscs.org.uk

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

For independent information about financial products and services visit  www.moneyadviceservice.org.uk

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