5 year discount later life lending 75% LTV [OBD21]
Discounted for 5 years
Early Repayment Charges apply.
This product may be withdrawn at any time.
Product key features
Who's the product for?
Where your client is in receipt of private or company pension we will consider applications up to the 85th birthday of the oldest borrower, subject to a maximum 75% loan to value. State pension will also be considered but only as a secondary income source.
Where the case is in joint names the clients must demonstrate the loan is affordable upon the death of either borrower. This can be established either by a transfer of pension rights or a specific life policy to clear the mortgage balance.
Independent legal advice must be taken by the non-borrower in all cases where the mortgage is to be in a single name and the property is occupied jointly.
There's a minimum mortgage amount of £50,000 and a maximum mortgage amount of £450,000.
The minimum property value is £75,000, this increases to £250,000 for properties that are located within the M25 corridor.
The maximum loan to value is 60%.
Interest rate floor
Your clients interest rate cannot fall below 2.64%.
Mortgage repayment terms
Your clients mortgage term must be a minimum of 5 years and a maximum of 35 years.
Early Repayment Charges
Up to 10% of the original mortgage amount can be overpaid each year without charge. If the mortgage is redeemed or switched to another product during the discount rate product term then an Early Repayment Charge will apply.
The Early Repayment Charge will be:
- 5% of the amount repaid during the first year;
- 4% of the amount repaid during the second year;
- 3% of the amount repaid during the third year;
- 2% of the amount repaid during the fourth year; and
- 1% of the amount repaid during the fifth year.
Free standard valuation: We'll cover the cost of one standard mortgage valuation on a property valued up to £400,000. Your client can choose to have a RICS Homebuyers Report, however they'll have to cover the difference in cost.
Product related fees
There is an arrangement fee of £499 that can be deducted from the mortgage amount or added to the amount borrowed.
Happy to help
- Understand our affordability criteria
- Answer any queries
- Process your decision in principle
- Discuss our lending criteria
Your home may be repossessed if you do not keep up repayments on your mortgage.