Whole of term discount retirement interest only

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. Applications for capital raising purposes can be considered.

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.

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 mortgage amount or added to the amount you borrow. If you add the arrangement fee to your mortgage you will pay interest on the fee at the same rate as your 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 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: You will receive £250 cashback from the society towards your legal costs.

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

Mortgage amounts

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

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 60% of the purchase price or valuation, whichever is lower.

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

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

Interest rate floor

The interest rate is floored and cannot fall below 2.30%.

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

Mortgage repayment terms

Please note, this mortgage is only available on an interest only repayment strategy. 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.

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

Early Repayment Charges

Up to 10% of the original mortgage amount can be overpaid for the first two 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:

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

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON 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 £225,000 payable over 25 years on a discounted variable rate for the term of the mortgage, currently 2.30% (equal to a 3.04% discount from our SVR, currently 5.34%) would require an initial payment of £446.45 and 299 monthly payments of £432.21.

The total amount payable would be £355,326.24 made up of the mortgage amount plus interest (£130,176.24), legal fees of £150, a telegraphic transfer fee of £25 and mortgage exit fees of £125

The overall cost for comparison is 3.3% APRC representative.

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