Retirement Mortgage For Over 60s But Not An Equity Release

Last post: Apr 12, 2012

A UK Building Society has for the first time launched a new mortgage aimed at those over 65 that isn’t an Equity Release scheme. It allows eligible applicants borrow up to 50% LTV (max £250,000) over a period up to 25 years and we have access to this limited mortgage product.

Source

A UK Building Society has for the first time launched a new mortgage aimed at those over 65 that isn't an Equity Release scheme. It allows eligible applicants borrow up to 50% LTV (max £250,000) over a period up to 25 years and we have access to this limited mortgage product.

These are the details of this mortgage:

  • Applicants must be at least 65 years of age to apply. There is no upper age limit
  • Up to 50% LTV is available but there must be at least £150,000 equity remaining in the property on completion
  • The maximum loan amount is £350,000 (negotiable for the right deal)
  • The rate is 5.74% variable
  • Interest Only options are also available
  • Terms of up to 25 years are available but if you repay anytime after the first year there are no Early Repayment Charges
  • Income must be provable (whether earned, pension, rental, investment etc.) and within normal income multiples. Income support from immediate family members can also be considered
  • The applicant must be the owner occupier of the property being offered as security
  • There is a £299 application fee and a £1,495 Lender fee added on completion
  • A standard Legal fees package is available at £370 all inclusive on remortgages (subject to terms and conditions)
  • The minimum applicant age is 65 and family members need to be informed of the mortgage details by solicitors

This mortgage product has been specifically designed for those already in retirement but who are still earning an income and to whom the mortgage market had previously been restricted to Equity release. So far the lender has shown great flexibility in terms of acceptable income and LTVs (indeed they originally launched this retirement mortgage at a LTV of 40% but subsequently increased it as demand for the product grew!).

Through our affiliation with a regulated mortgage adviser Choice Loans is able to offer this product to our clients. To apply either fill in the mortgage inquiry form on our mortgage page here or call us on 0845 1260350.

Comment