In recent years lending options for borrowers over 55 have rapidly increased.
No longer solely the domain of equity release, you’re no doubt well aware of the variety of options on offer for clients taking a mortgage in or into retirement. It’s not just about swapping an existing mortgage deal, we’re seeing an increasing amount of previously mortgage-free clients choosing a mortgage to fund later lifestyle choices.
This is where expert, manual underwriting can really help, as we’ll take a close look at your case rather than relying on a computer to make decisions for us – particularly useful for lending areas such as:
- Downsizing – clients can purchase and move into a new, smaller home at their own speed, and, once ready, sell their previous property and use the surplus income for retirement spending.
- Releasing cash – a lump sum of cash to purchase a lifestyle item, such as a motorhome or caravan, or gift to children or grandchildren.
- BTL income – purchasing a new home whilst retaining the former property to rent out (providing an additional monthly income and continued future investment).
Mortgages have come a long way since your clients first started out and, whilst they may think a ‘standard’ residential mortgage is out of reach, quite often it might just provide the most sensible answer to their later life plans.
Three things you should know about our later life offer:
- No max age limit for capital and interest mortgages. Interest only capped at 95 at the end of the term. We also have no max age on BTL or holiday let.
- Later life available on standard product range. Max 75% LTV for applicants borrowing into retirement, or 70% LTV for applicants in retirement (50% if interest only).
- Up to 40-year term. Max 30 years for buy to let.
When calculating affordability we’ll not only use 100% of state and company pension income in our assessment, but we’ll also utilise an uncrystallised SIPP/pension too – we’ll take 80% of the fund value, divide by the mortgage term and use the resulting figure in our calculations. Plus, for clients with investment income we’ll take 75% into account and, for those with buy to lets, we’ll take 100% of the average UK Land & Property income from the last 2 years.
Find out more or get in touch.
We’re experts at lending to applicants in or into retirement, available on our standard range of products. Visit our later life lending page for more information or get in touch and make it simple with the Suffolk.