If your clients are looking for mortgage lending into later life, we can help.
Retirement interest only (RIO) mortgages
Our RIO product range allows your client to use the sale of their property as their repayment strategy (provided they are receiving pension income and have a minimum of 40% equity in the property).
In contrast to our lending into retirement products, our RIO mortgages have no fixed term, and can run until a life changing event occurs.
If your client wishes to gift some equity to a family member, enjoy some holidays or give their home a face-lift with some home improvements, up to 25% of the property value can be released for these purposes.
Joint applications for a RIO mortgage can be considered when both applicants are aged 55 or over, and can satisfy affordability checks individually.
Lending into retirement products
Everyone’s needs and circumstances are different. With our lending into retirement products, your clients can borrow up to their 95th birthday, meaning your clients can borrow into retirement or if they’re already retired.
With these products, affordability can be assessed in a number of ways:
- If the term does not extend past age 79 (for males) or age 83 (for females), then our standard affordability assessment can be applied.
Please note, if your client has an interest only application you will still need to meet our standard interest only criteria in terms of repayment vehicles.
- Where the term extends past these ages if both applicants are retired but cannot prove affordability in sole name, applications will be considered where there is enough equity available to downsize to a two-bedroom flat/house within 5 miles of the mortgage property.
Lending on retirement properties
And if they’re looking to purchase a purpose built retirement property, we can help. Our later life lending range allows your clients to buy their retirement home.
Call us today to discuss your case
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