Charles Derby Mortgage Bureau"Thank you for your help and assistance in this case, it takes me back to the good old days of everything being manually underwritten."Peter Matthews
Whole of term discount retirement interest only [RDG007]
Discounted for term
Early Repayment Charges apply.
This product may be withdrawn at any time.
Product key features
Who's the product for?
Your client must be aged 55 or over and receiving verifiable 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 related fees
There is an arrangement fee of £499 that can be deducted from the mortgage amount or added to the amount borrowed.
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.
Legal fees cashback: Clients must nominate their own solicitor but will receive £150 cashback from the society towards their legal fee costs.
The minimum mortgage amount of £50,000 and the maximum amount we will lend is £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 is 60% of the purchase price or valuation, whichever is lower.
Interest rate floor
The interest rate is floored and cannot fall below 2.99%.
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 for the first five years of the term 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:
- 5% of the amount repaid during year 1;
- 4% of the amount repaid during year 2;
- 3% of the amount repaid during year 3;
- 2% of the amount repaid during year 4; and
- 1% of the amount repaid during year 5.
We're here to help
- Discuss affordability
- Help you understand our criteria
- Process your decision in principle request
- Answer any outstanding queries
Your home may be repossessed if you do not keep up repayments on your mortgage.