3 year 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.

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.

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 £100,000 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.

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 5.09%.

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

Mortgage repayment terms

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

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

Early Repayment Charges apply during the product term. Up to 10% of the original mortgage amount can be overpaid each year without charge, however, if the mortgage is redeemed or switched to another product during the product term, then the full amount of the Early Repayment Charge will apply.

The Early Repayment Charge will be calculated at:

• 4% of the amount repaid until 31 July 2024;
• 3% of the amount repaid until 31 July 2025; and
• 2% of the amount repaid until 31 July 2027.

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

Mortgage tariff of charges

The mortgage tariff of charges details the various fees and charges that may apply during the term of your mortgage.

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 £260,000 payable over 15 years on a discounted variable rate until 31 July 2027, currently 5.84% (equal to a 2.75% discount from our SVR) and then our SVR, currently 8.59% for the remaining term would require an initial payment of £1,309.54, followed by 35 monthly payments of £1,267.76 and 144 monthly payments of £1,864.54.

The total amount payable would be £575,373.90 made up of the mortgage amount plus interest (£314,673.90) with a mortgage arrangement fee of £499, a mortgage valuation fee of £400, legal fees of £150, a telegraphic transfer fee of £25 and mortgage exit fees of £125.

The overall cost for comparison is 8.1% APRC representative.

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