Residential Mortgages

We offer a range of interest only residential mortgages designed specifically with the older borrower in mind.

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Residential Mortgages

Our residential mortgages are designed for borrowers aged 50+ looking for a mortgage in later life or seeking alternatives to traditional equity release.  

With a choice of two residential mortgage packages, your client can opt for the product that suits them best: 

  • A choice of fixed term up to 41 years (50+ Mortgage) or no end term (RIO Mortgage)
  • Both products are interest-only residential mortgages that can be used for purchase or re-mortgage
  • 2 year or 5 year fixed rates or 2 year discount, reverting to SVR
  • Early Repayment Promise, no ERCs payable if the mortgaged property is sold and the mortgage is repaid in full from the proceeds – if repaid for any other reason ERCs may apply (see product table below)
  • Available in England, Wales and mainland Scotland

Lump sums can be released at 75% LTV and used to pay off existing mortgages, debt consolidation, gifting to family or releasing equity. As a specialist lender, we’re able to accept a broad range of income sources from both pre and post retirement. 

A suitable repayment vehicle such as sale of property must be in place for the 50+ Mortgage, we do not require a repayment vehicle for the RIO as the capital is repaid on death or entry into long term care.

Keep in mind these products don’t offer safeguards in the event of payment difficulties.

The 50+ Mortgage and RIO Mortgage can be recommended without holding a specialist equity release qualification. 

Product Summary

Loan Size:£20,000 to £1.5 million
Maximum LTV:50%, 60% or 75% depending on the product chosen
Purpose:Purchase and re-mortgage
Option:50+ MortgageRIO Mortgage
2 year discount rate (Maximum LTV of 60%)3.09% (£995 product fee)
3.20% (fee free)
2.90% (£995 product fee)
3.15% (fee free)
2 year discount rate (Maximum LTV of 75%)3.19% (£995 product fee)
3.30% (Fee free)
3.50% (£995 product fee)
3.75% (Fee free)
2 year fixed rate (Maximum LTV of 60%)3.19% (£995 product fee)
3.30% (fee free)
3.00% (£995 product fee)
3.25% (Fee free)
2 year fixed rate (Maximum LTV of 75%)3.29% (£995 product fee)
3.40% (Fee free)
3.60% (£995 product fee)
3.85% (Fee free)
5 year fixed rate (Maximum LTV of 50%)3.00% (£995 product fee)
3.35% (Fee free)
3.10% (£995 product fee)
3.25% (Fee free)
5 year fix (Maximum LTV of 60%) 3.20% (£995 product fee)
3.55% (Fee Free)
3.30% (£995 product fee)
3.45% (Fee free)
5 year fixed rate (Maximum LTV of 75%)3.50% (£995 product fee)
3.65% (Fee free)
3.90% (£995 product fee)
4.05% (£0 product fee)
SVR (Standard Variable Rate)4.20%4.20%
APRPlease view our product Matrix for information on APRs
Product FeeFee free and £995 options available
2 year discount ERC3% years 1 and 2
2 year fixed ERC3% years 1 and 2
5 year fixed ERC5% year 1, 4% year 2, 3% year 3, 2% year 4, 1% year 5.5% year 1, 4% year 2, 3% year 3, 2% year 4, 1% year 5
Min / Max TermMinimum of 5 years from age 50, maximum term of 41 yearsFrom age 50, no maximum term as no end date required
Repayment vehicleSale of property, cash in of investments or assets at end of termSale of property upon death or entry into long term care
Valuation FeesFree up to and including property values of £1 million. Properties over £1 million will have the £1 million survey fee amount deducted
Legal FeesFree for standard remortgage
Proc Fee0.55% if through a Club or Network. 0.35% if paid direct
LocationEngland, Wales and Mainland Scotland
Legal FeesFree for standard remortgage
Minimum Property Value£120,000 (require £100,000 minimum equity)£120,000
Maximum Property Value£10 million

In order to be eligible for one of our residential mortgages, your client needs to demonstrate they can afford the loan. The property must also form suitable security for the loan. 

Employed/self employed income age limit Up to age 80 based on discretion of underwriter and dependent on occupation.
Joint ApplicantsBeyond age 75, we will assess each applicant on their ability to continue with repayments in the event of death. We will factor in survivors/spouses pension and life cover.
Number of income sources We do not limit the number of income sources per applicant, any acceptable
income will be taken into account.
Rental property income Acceptable indefinitely, no upper age limit.

If the applicant is still working, we will need proof of their employed/self-employed income. Where the loan extends beyond the expected retirement date, the applicant must benefit from a reasonable level of income in retirement in order to be eligible. The sources of retirement income we take into account include: 

  • Pension income or future entitlements 
  • Investment income 
  • Rental income 
  • Residential 
  • Commercial 
  • Ltd company residential 
  • Holiday rental income 
  • Spousal/maintenance income 
  • Sub-contractor income 
  • Some benefits (see here for more information on what we will and won’t accept). 

Repayment strategy 

For the 50+ Mortgage, there must be a suitable strategy in place to repay the loan at the end of the term. Repayment strategies can be combined, but their total value must be sufficient to repay the loan. We accept a range of repayment strategies which include: 

  • Sale of the home when downsizing to a more manageable property in later life 
  • Sale of other property owned 
  • Sale of investments 
  • Proceeds of a maturing endowment policy. 

For the RIO Mortgage, we do not require a repayment strategy as the capital element of the loan is repaid on death or entry into long term care.

Property eligibility 

The property must form a suitable security for the 50+ Mortgage. We accept a range of property types. 

Frequently Asked Questions

The 50+ Mortgage is an interest only fixed term, residential mortgage available from age 50. At the end of the term, a repayment vehicle such as downsizing is required to repay the capital.

The RIO Mortgage, also an interest only residential available from age 50 and has no end date. The capital is repaid upon death or entry into long term care.

Yes. The interest must be paid each month regardless of the type of residential mortgage you choose.

For the 50+ Mortgage there must be sufficient means to repay the loan capital at the end of the term. This could be through sale of property (main residence or 2nd home) or cashing in investments or assets.

For the RIO Mortgage, the capital is repaid on death or entry into long term care.

We can lend a maximum of 75% LTV on both mortgages with loans from £20,000 to £1,500,000 (if you want to obtain a loan over this amount please refer to us by calling 0800 138 9109).

The final amount we’ll lend is based on our assessment of your client’s ability to afford the loan. We’ll look at employment income (including self-employed) and retirement income that’s currently being paid, or forecast to be paid upon retirement.

We’ll also look at outgoings including any loans or financial commitments already in place.

For the 50+ Mortgage, we must be satisfied that the repayment vehicle chosen (options are sale of home, cash in of investments or assets) is of sufficient value to repay the loan at the end of the term.

For the RIO Mortgage, the capital is repaid on death or entry into long term care.

As a responsible lender, we look at providing residential mortgage loans that remain affordable now and in the future.

We review the SVR regularly. The SVR may change to reflect changes in the Bank of England base rate or due to our funding or administration costs, economic effects and the impact of new laws or regulations. If it changes, we’ll provide reasonable notice.

The loans can be repaid at any time; however, an early repayment charge applies in the first five years for five-year fixed rates and the first two years for two-year rates (fixed and discount).

See our product summary for full details.

During any initial fixed rate or discount period, overpayments of up to 10% can be made off the capital without incurring early repayment charges.

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