5 year discount later life lending
Discounted for 5 years
Early Repayment Charges apply.
This product may be withdrawn at any time.
Product key features
Who's the product for?
You must be aged 55 or over and receiving verifiable income. For joint applications, both of you must be aged 55 or over and each of you must be able to individually satisfy affordability.
You can use the sale of your home as your repayment strategy provided you have a minimum of 40% equity in the property. Up to 25% of the property value can be released for capital raising purposes.
Where you are buying your home in joint names you must demonstrate the mortgage is affordable should either borrower die. This can be established either by a transfer of pension rights, a specific life policy to clear the mortgage balance or any joint investments.
Lending on retirement properties
And if you’re looking to purchase a purpose built retirement property, we can help. Our later life lending range allows you to buy your retirement home and again, there’s no upper age limit.
Valuation fee contribution: We'll cover the cost of one standard mortgage valuation on a property valued up to £400,000. You can choose to have a RICS Homebuyers Report, however you'll have to cover the difference in cost.
Product related fees
There is an arrangement fee of £499. This fee can be paid up front by deducting the fee from the mortgage amount or added to the amount you borrow.
If you add the fee to your mortgage you will pay interest on the fee at the same rate as your mortgage.
Mortgage amounts and repayment terms
The minimum mortgage amount of £50,000 and the maximum amount we will lend is £450,000.
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 is 75% of the purchase price or valuation, whichever is lower.
Mortgage repayment terms
The minimum repayment term is 5 years and the maximum term is 35 years.
Interest rate floor
The interest rate is floored and cannot fall below 2.64%.
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:
- 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.
Mortgage tariff of charges
The mortgage tariff of charges details the various fees and charges that may apply during the term of your mortgage.
A mortgage of £400,000 payable over 35 years on a discounted variable rate for 5 years, currently 2.64% and then our SVR, currently 5.24% for the remaining term would require an initial payment of £1,491.02 followed by 60 monthly payments of £1461.99 and 359 monthly payments of £2,002.48.
The total amount payable would be £808,400.74 made up of the mortgage amount plus interest (£408,100.74) with legal fees of £150, a telegraphic transfer fee of £25 and mortgage exit fees of £125.
The overall cost for comparison is 4.5% APRC representative.
We're here to help
- Discuss affordability
- Help you understand our criteria
- Find the best mortgage for you
- Answer any outstanding queries
Your home may be repossessed if you do not keep up repayments on your mortgage.