Lending Into Retirement Downsizing [Interest Only] 60% LTV
When you retire, this interest-only mortgage allows you to downsize and use the sale of the property to pay off the remaining loan.
For those looking to borrow into retirement, we understand there is a lot to consider. The Building Societies Association have produced a helpful guide for older borrowers providing information on the types of options available and things to consider.
An initial rate of
(2.70% discount off our SVR)
variable for three years,
followed by a 1.00% discount off our SVR, which is currently 5.39%, to give a current rate payable of
variable for the rest of the mortgage.
The overall cost for comparison is
|Loan to Value (LTV)||60%|
|Arrangement fee||£999 Other fees may apply.|
|Available for remortgages||Yes|
|Early repayment charges||2% of the advance|
Your home may be repossessed if you do not keep up repayments on your mortgage
The following representative example is intended to allow you to easily compare products across lenders and does not reflect what your actual monthly payment or APRC could be. Please contact us if you have any questions regarding this.
A mortgage of £352,383 payable over 10 years 0 months, initially on a Discounted rate for 3 years 0 months at 2.69% and then a 1.00% discount off our current Standard Variable Rate Mortgage of 5.39% to give a current rate payable of 4.39% (variable) for the remaining 7 years 0 months, would require 36 monthly payments of £789.93 and 84 monthly payments of £1,289.13.
The total amount payable would be £489,107.60 made up of the loan amount plus interest (£136,724.60), an application fee of £180 and a redemption fee of £80.
The overall cost for comparison is 3.9% APRC representative.
Fees may differ to those shown in this representative example. Current fees can be found in our tariff of charges.
Additional product information
- This mortgage is Interest Only
- Repayment strategy will be sale and downsize of your main UK residence
- Minimum equity £250,000 (without geographical restriction). We can consider cases below this level, if other assets are in place or depending on where the property is. Subject to an Underwriter assessment.
- Providing examples of property options to downsize into at the point of retirement are required
- Evidence of retirement income required
- Applicant must not be more than 5 years from retirement
- Maximum term is determined by Office of National Statistics (ONS) Life tables
- Other repayment strategies are available via our standard product range and which may be more appropriate
- Overpayments up to 10% of the advance are allowed.
- This mortgage is portable which means it is possible to take this product with you to a new property, subject to lending criteria and policy at the time.
- This mortgage is available to new mortgage customers only.
If you already have a mortgage with us and are looking to switch your deal, please give us a call on 0800 072 1100 to discuss our range of mortgages available exclusively for existing customers.
- The interest rate charged will not fall below 2.00% (the minimum interest rate) at any point during the mortgage.
- The mortgage must be for a minimum of £30,000 and a maximum of £1,000,000.
- All applications are subject to current lending criteria.
- The minimum property value is £100,000.
- Please view our mortgage services fees and our mortgage valuation fees.
This does not include all of the information you need to choose a mortgage. For full details please ask us about how you can get an illustration.