arrangement fee
This fee can be paid upfront or added to the mortgage amount. If the fee is added to the mortgage then interest will be payable on the fee at the same rate as the mortgage.
£499
booking fee
This fee must be paid on application. We are unable to accept payment of the fee by credit card.
no fee
initial rate
3.15% fixed until 30 November 2026
3.15%
followed by our SVR 4.94%
The overall cost for comparison is 4.1% APRC

Fixed until 30/11/2026 . Early Repayment Charges apply. . This product may be withdrawn at any time.

Product key features

Who's the product for?

Affordability can be assessed using earned income up to retirement age. Once the client reaches retirement, affordability for the remainder of the term will be calculated using verifiable income from a pension or other sustainable source, such as investments or rental income. Death stress calculations will be used should either borrower reach age 80 during the mortgage term. Once affordability is satisfied, we apply a 4.49 times income multiplier to determine the maximum level of borrowing. To verify if your clients meet affordability criteria, contact a member of the team directly.

Split Terms 

Did you know that within our later life lending proposition, clients can choose to split their term to reflect their changing financial position following retirement? Above affordability requires still apply, but can also be assessed separately against their current earned income, and future pension provision enabling a proportion of the mortgage to be secured over an extended term. For example:

Mr & Mrs Client are 55 and 52 years of age and are moving to a new house and require a mortgage of £180,000 to support this new purchase. Their current salaries are sufficient to support the £180,000 borrowing, but rather than apply a term to Mr scheduled retirement age (70). They were able to demonstrate that their pension provision was sufficient to support borrowing in retirement of £100,000. This enabled an application to be agreed on a split extended term:
Part 1 £80,000 on a capital and repayment basic over 14 years
Part 2 £100,000 on an interest only basis for 29 years

For joint applications where 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. Your clients can use the sale of their home as their repayment strategy provided they have sufficient equity to downsize to a two bedroom flat/house within 5 miles of the mortgage property.
Up to the maximum product LTV can be released for capital raising purposes. Borrowers must provide a signed declaration stating that in the event of death it is the intention of the surviving borrower to downsize. 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.

These products are available for all residential properties (providing they meet our property criteria), as well as purpose-built retirement properties. For retirement properties, the following criteria restrictions apply:

  • Maximum 60% LTV
  • £200,000 minimum property value;
  • Section 106 restrictions are accepted where the developer has specific right to first refusal of buy back as long as no onerous terms or reduced value apply;
  • New build apartments are accepted; and
  • Properties within a large scale retirement village will be considered subject to valuer feedback.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Product related fees

There is an arrangement fee of £499. This fee can be paid up front by deducting the fee from the amount borrowed. Alternatively you can add the fee to the mortgage amount. If your client adds the fee to their mortgage, they will pay interest on the fee at the same rate as their mortgage.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Product incentives

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.

Fees assisted legals: We'll cover the costs of any standard legal fees involved. Any non-standard costs will be payable by your client. You'll be advised of any non-standard costs should any apply. If your client chooses to use our own conveyancers they'll only act for us and not for the customer during the remortgage transaction. If your client needs to add or remove a name on the mortgage they must appoint their own solicitors, and they'll receive £250 cashback towards their costs.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Mortgage amounts

There is a minimum mortgage amount of £100,000 and a maximum mortgage amount of £500,000.

We have 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 75%.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Mortgage repayment terms

A minimum mortgage term of 5 years applies. There is also a maximum term of 35 years.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Early Repayment Charges

Early Repayment Charges apply during the product term. Up to 10% of the original mortgage amount can be overpaid each year without charge, however, if the mortgage is redeemed or switched to another product during the product term, then the Early Repayment Charge will apply.

The Early Repayment Charge will be:

  • 6% of the amount repaid until 30 November 2021;
  • 5% of the amount repaid until 30 November 2022;
  • 4% of the amount repaid until 30 November 2023;
  • 3% of the amount repaid until 30 November 2024;
  • 2% of the amount repaid until 30 November 2025; and
  • 1% of the amount repaid until 30 November 2026.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Always happy to help

  • Discuss affordability
  • Help you understand our criteria
  • Process your decision in principle request
  • Answer any outstanding queries
Our Head of Mortgage Sales, Richard is happy to help 0121 521 4000*
Our lines are open:
Monday - Friday9:00 - 17:00
Saturday - SundayClosed
*Calls from landlines are charged at the standard rate. Calls from mobiles may vary.
"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
Charles Derby Mortgage Bureau

Your home may be repossessed if you do not keep up repayments on your mortgage.