Interested in our 50+ mortgage?
You'll need financial advice to help you decide if the 50+ mortgage is right for you.Find a Financial Advisor
Our 50+ mortgage is for customers with a clear repayment plan, and an understanding of when they’d like to pay. It’s an interest only mortgage, with a fixed term, that can help you pay off an existing interest only mortgage or release equity from your home.
You can choose how long to fix your mortgage for. When it comes to the end of your mortgage term, you may be able to remortgage – depending on your circumstances – or repay us in full.
Here’s how it works:
To find out if our 50+ mortgage is right for you, you’ll need to speak to a Financial Advisor.
Our 50+ residential mortgage is an interest only mortgage, with a fixed term duration, for customers aged 50+. You can use it for several reasons – from supporting family, to paying off debt, or making home improvements.
It’s for customers who have a clear repayment plan, and an understanding of when they’d like to pay their mortgage off.
If you’re coming to the end of a current interest only mortgage, but don’t have the funds to repay it yet, you might be able to switch to a 50+ interest only mortgage. Or, maybe you don’t have a mortgage on your home, and want to use an interest only mortgage to release some money from it.
Your Financial Advisor will be able to help you work out if a 50+ mortgage is the best option for you.
Throughout the term of your mortgage, you only pay the interest on the amount you’ve borrowed. At the end of the mortgage term, you pay us the full loan amount. There are a variety of ways you can do this – like selling your home, using savings or pension income, or other investments. Your Financial Advisor will be able to help you work out the best way to do this.
The main difference between a 50+ mortgage and Equity Release or RIO is that with a 50+, you pay the interest as you go and need a repayment strategy for when your mortgage ends.
With Equity Release, the interest rolls up, and with a RIO, the loan is repaid when you pass away or go into long-term care.
This means that with a 50+ mortgage you could keep more equity in your home – because you’ll pay interest as you go, as long as you’ve kept up with your payments, the final amount you owe us will always be the same as the amount you initially borrowed, regardless of if your home goes up or down in value.
Here’s an example:
Your home is worth £200k. You take out a 50+ mortgage of £100k, for 20 years. Over the 20 years, your house grows in value to £300k. But, because you’ve been paying the interest on your loan each month, you still only owe us £100k – the amount you initially borrowed.
You can take out our 50+ mortgage either solely, or with someone else. We look at a wide range of income types (like pension, investments, and rental), and your advisor will be able to help you work out the best course of action. We look at all applications on a case by case basis, and try to be as flexible as we can.
You’re free to use the money you release from your home for almost anything you wish. To date, our customers have used it for home improvements, holidays, gifts to family, or to improve their lifestyle.
You can’t use the money for paying a tax bill, or for any business purposes. Your financial advisor will be able to discuss this with you in more detail.
You’ll need financial advice to make sure you’re making the best choice for you. Speak to your Financial Advisor or find one here.
You’ll need to speak to a qualified Financial Advisor who’ll take the time to look at all your personal circumstances and help you find the right mortgage to suit you. They’ll then apply on your behalf.
If you’re an adviser and would like to work with us, or recommend one of our products to your customers, visit our intermediary site for more information.Visit our Intermediary website