5 year discount retirement interest only

Discounted for 5 years

Early Repayment Charges apply.

This product may be withdrawn at any time.

 
arrangement fee
This can be paid up-front or added to the mortgage. Bear in mind that if you add the fee to your mortgage, you'll pay interest on it at the same rate as your mortgage and as a result will pay more interest over the term of your mortgage.
£499
booking fee
This fee must be paid when you apply for your mortgage.
no fee
initial rate
1.70% discount from our SVR for 5 years
3.29%
followed by our SVR
Our Standard Variable Rate (or SVR) reflects our cost of lending using a number of factors, including the Bank of England Base Rate. As the SVR is a variable rate it can change at any time.
4.99%
the overall cost for comparison is 4.7% APRC
 

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.

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

The minimum mortgage amount of £50,000 and the maximum amount we will lend is £1,000,000.

The minimum property value is £200,000.

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 3.29%.

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:

  • 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.

Representative example

The mortgage term used below is for illustration purposes only. This is an interest only mortgage with no defined term.

A mortgage of £120,000 payable over 40 years on a discounted variable rate for 5 years, currently 3.29% and then our SVR, currently 4.99% for the remaining term would require an initial payment of £341.26 followed by 59 monthly payments of £330.37 and 420 monthly payments of £501.07.

The total amount payable would be £351,331.49 made up of the mortgage amount plus interest (£230,781.49) with a mortgage arrangement fee of £499, a mortgage valuation fee of £250, legal fees of £150, a telegraphic transfer fee of £25 and mortgage exit fees of £125.

The overall cost for comparison is 4.7% APRC representative.

Laurence, our Mortgage Adviser is here to help 0121 557 2551* Contact Us
Our lines are open:
Monday - Tuesday09:00 - 17:00
Wednesday09:30 - 17:00
Thursday - Friday09:00 - 17:00
Saturday09:00 - 12:00
SundayClosed
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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.