3 year discount retirement interest only remortgage

Who's the product for?

Your client must be aged 55 or over and receiving verifiable pension income. For joint applications, both of your clients must be aged 55 or over and each applicant must be able to individually satisfy affordability.

Your clients can use the sale of their home as their repayment strategy provided they have a minimum of 40% equity in their property. Up to 25% of the property value can be released for capital raising purposes.

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, a specific life policy to clear the mortgage balance or any joint investments.

Product incentives

Free standard valuation: We'll cover the cost of a standard valuation on a property valued up to £400,000. Properties valued over £400,000 will receive a contribution of £350 towards the cost.

Fees assisted legals: Your client has the choice of choosing our own solicitors, where we'll cover the cost of any standard legal fees, or receiving £150 cashback towards their own solicitor's costs. You'll be advised of any non-standard costs that will apply. If your client chooses to use our solicitors, they'll only act for us and won't provide them with independent advice regarding the mortgage transaction.

Product related fees

There is an arrangement fee of £499 that can be deducted from the mortgage amount or added to the amount borrowed.

Mortgage amounts

There is a minimum mortgage amount of £50,000 and a maximum mortgage amount of £1,000,000.

There's a minimum property value of £75,000 which increases to £250,000 for properties located within the M25 corridor.

The maximum loan to value for this product is 60%.

Interest rate floor

Your clients interest rate is floored and won't reduce below 3.09%.

Mortgage repayment terms

The minimum repayment term is 5 years but there is no maximum repayment term. 

The mortgage must be repaid following a life event, including:

• death of the sole borrower or the surviving borrower for joint mortgages;
• sole borrower or surviving borrower for joint mortgages entering long-term residential care; or
• sale of the property.

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 calculated at:

• 3% of the amount repaid during year 1;
• 2% of the amount repaid during year 2; and
• 1% of the amount repaid during year 3.