Residential Mortgages

Affordability Calculator

Based on your client’s income and expenditure, you can estimate the loan amount that your client could be eligible for.

FAQs

The 55+ Mortgage is an interest only fixed term, resi mortgage available from age 55 with a maximum term to age 95. At the end of the term a repayment vehicle such as downsizing is required to repay the capital.

The 55+ RIO, also an interest only resi available from age 55 has no end date. The capital is repaid upon death or entry into long term care.

The 55+ Mortgage requires minimum equity of £100,000 whereas the 55+ RIO has no minimum equity requirement.

With loans from £20,000 the minimum property value for 55+ Mortgage is £120,000, for the 55+ RIO it’s £100,000 due to us not needing £100,000 minimum equity.

Yes. The interest must be paid each month.

For the 55+ Mortgage there must be sufficient means to repay the loan capital at the end of the term. This could be through sale of property (main residence or 2nd home) or cashing in investments or assets.

For the 55+ RIO, the capital is repaid on death or entry into long term care.

We can lend a maximum of 60% LTV on both mortgages with loans from £20,000 to £1,000,000 (if you want to obtain a loan over this amount please refer to us by calling 0800 731 4076).

The final amount we’ll lend is based on our assessment of your client’s ability to afford the loan. We’ll look at employment income (including self-employed) and retirement income that’s currently being paid, or forecast to be paid upon retirement.

We’ll also look at outgoings including any loans or financial commitments already in place.

For the 55+ Mortgage, we must be satisfied that the repayment vehicle chosen (options are sale of home, cash in of investments or assets) is of sufficient value to repay the loan at the end of the term.

For the 55+RIO, the capital is repaid on death or entry into long term care.

As a responsible lender, we look at providing mortgage loans that remain affordable now and in the future.

We review the SVR regularly. The SVR may change to reflect changes in the Bank of England base rate or due to our funding or administration costs, economic effects and the impact of new laws or regulations. If it changes, we’ll provide reasonable notice.

The loans can be repaid at any time, however an early repayment charge applies in the first five years for five year fixed rates and for the first two years with two year fixed rates. See our product summary for full details.

During any initial fixed rate or discount period, overpayments of up to 10% can be made off the capital without incurring early repayment charges.

Our 55+ Mortgages are portable so can be transferred with a house move. The costs involved in transferring are the responsibility of the borrower, and the new property must form suitable security for the mortgage.

Paying interest on the loan could impact future income levels needed to fund retirement. We encourage you to discuss retirement plans with your client to ensure changes to circumstances can be accommodated.

Our 55+ Mortgages are not equity release lifetime mortgages. They don’t fall within the remit of the Equity Release Council’s product standards. This means they do not offer the safeguards traditionally associated with equity release products.

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