3 year discount remortgaging into retirement

Who's the product for?

Affordability can be assessed using earned income up to retirement age. Once you reach retirement, affordability for the remainder of the term will be calculated using verifiable income from a pension or other sustainable source, such as investments or rental income.

With our lending into retirement products, affordability can be assessed in a number of ways:

1. If the term does not extend past age 79 (for males) or age 83 (for females), then our standard affordability assessment can be applied.
   Please note, if you have an interest only application you will still need to meet our standard interest only criteria in terms of repayment vehicles.
2. Where the term extends past these ages if both applicants are retired but cannot prove affordability in sole name, applications will be considered where there is enough equity available to downsize to a two-bedroom flat/house within 25 miles of the mortgage property.

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 that can be deducted from the mortgage amount or added to the amount borrowed. 

If you add the 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.

Fees assisted legals: You have the choice of choosing our own solicitors, where we'll cover the cost of any standard legal fees, or receiving £250 cashback towards your own solicitor's costs. You'll be advised of any non-standard costs that will apply. If you choose to use our solicitors, they'll only act for us and won't provide you with independent advice regarding the mortgage transaction.

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

Mortgage amounts and repayment terms

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 75% of the purchase price or valuation, whichever is lower.

Mortgage repayment terms

The minimum repayment term is 5 years and the maximum term is 40 years.

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

Interest rate floor

The interest rate is floored and can't fall below 5.19%.

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 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

A mortgage of £260,000 payable over 15 years on a discounted variable rate until 31 July 2027, currently 5.94% (equal to a 2.65% discount from our SVR) and then our SVR, currently 8.59% for the remaining term would require an initial payment of £2,232.29 followed by 35 monthly payments of £2,189.80 and 144 monthly payments of £2,509.81.

The total amount payable would be £440,487.93 made up of the mortgage amount plus interest (£180,287.93) with an arrangement fee of £499, a mortgage valuation fee of £50, a telegraphic transfer fee of £25 and mortgage exit fees of £125.

The overall cost for comparison is 7.8% APRC representative.

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