Retired borrowers who are buying or remortgaging their home, have at least 40% deposit/equity and wish to pay the monthly interest only with the loan repayment being from the future sale of the property and are comfortable with interest rate changes.
Borrowers who are under the age of 55 or who want a fixed rate of interest.
5.09% variable, which includes a 2.51% discount from our Standard Variable Rate for the term of the mortgage.
5.3% APRC
Arrangement fee - £499 (Can be paid up front or added to the loan)
Mortgage exit fee - £100 (payable when the mortgage is fully repaid)
One free valuation included, up to the value of £1,000.
No early repayment charges.
Purchase or remortgage
Interest-Only.
60%
Minimum £25,000 – Maximum £750,000
There is no maximum age, but all borrowers must be at least 55 at date of application, be retired or planning to retire in the next 5 years.
This mortgage does not have a specified mortgage term. We will only require full repayment within 6 months of when the property is permanently vacated by the borrower (or final surviving borrower, if in joint names), due to death, moving to another property, or entering sheltered accommodation or long-term care.
The interest rate for this mortgage has a ‘floor’, which means that it will never fall below 2.50% during the discount period.
If you add the arrangement fee to the loan, then interest will be charged on it resulting in a greater amount payable over the term of the mortgage.
This product is portable and can be transferred from the existing property to a new property.
Property must be in England and Wales with a value of £125,000 or more.
Please refer to our Retirement Interest-Only leaflet for full product details.
Mortgages are subject to underwriting.
This information is to help you understand the typical cost of this mortgage and is not representative of your personal circumstances.
A mortgage of £100,000.00, payable over 15 years, on an interest-only basis, with an initial payable rate of 5.09%, which includes a 2.51% discount from our Standard Variable Rate (SVR), currently 7.60%, for the term of the mortgage. The term would require 180 monthly payments of £424.17.
The total amount payable would be £177,199.60, made up of the loan amount (£100,000.00), plus interest (£76,350.60), Arrangement Fee (£499), Solicitor Fee (£250), and a Mortgage Exit Fee (£100).
The overall cost for comparison is 5.3% APRC.
If you haven’t registered with us already, please register online before submitting business with us. Once registered with us, you can register to our broker online services.
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Obtain a DIP before submitting an application. Attach an affordability calculator to your submission and we'll give you an initial decision based on the information provided.
DECISION IN PRINCIPLE
Once your registration has been confirmed, you'll be able to submit an application via our online broker portal. All documents required for the application are uploaded at this time.
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