In light of the coronavirus outbreak, we are only offering our 50+ and RIO products up to 60% LTV with a remote valuation. There are also some changes to our Property and Credit criteria. We will continue to monitor the situation and review this on an ongoing basis.
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, 5 year, 10 year and fixed-for-life fixed rates or 2 year discount, reverting to SVR
- 2, 5 and 8 year ERCs based on the product chosen
- Available in England, Wales and mainland Scotland
Lump sums can be released at 60% 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.
Downsizing Protection is available for our RIO Fixed-for-Life product (please see our Product Summary for more details).
Keep in mind these products don’t offer safeguards in the event of payment difficulties. If safeguards are an important consideration, you may wish to consider our Retirement Mortgage or our more traditional equity release products.
The 50+ Mortgage and RIO Mortgage can be recommended without holding a specialist equity release qualification.
|Loan Size:||£20,000 to £1.5 million|
|Purpose:||Purchase and re-mortgage|
|Option:||50+ Mortgage||RIO Mortgage|
|2 year discount rate||2.45% (£995 product fee)|
2.75% (fee free)
|2.60% (£995 product fee)
2.85% (fee free)
|2 year fix rate||2.99% (£995 product fee)|
3.30% (fee free)
|3.20% (£995 product fee)
3.45% (fee free)
|5 year fix rate||3.40% (£995 product fee)|
3.55% (fee free)
|3.50% (£995 product fee)
3.65% (fee free)
|10 year fix rate||N/A||3.95% (£995 product fee)
4.15% (fee free)
|Fixed for Life rate||N/A||4.35% (£995 product fee)
4.55% (fee free)
|SVR (Standard Variable Rate)||4.20%||4.20%|
|APR||2 year discount|
4.1% (fee free) 4.1%
2 year fix
4.74% (fee free) 4.69%
5 year fix
4.56% (fee free) 4.52%
|2 year discount – 4.1%
(fee free) – 4.1%
2 year fix – 4.76%
(fee free) – 4.71%
5 year fix – 4.59%
(fee free) – 4.55%
10 year fix – 4.50%
(fee free) – 4.53%
Fixed for Life – 4.58%
(fee free) – 4.70%
|Product Fee||Fee free and £995 options available|
|2 year discount ERC||3% years 1 and 2|
|2 year fixed ERC||3% years 1 and 2|
|5 year fixed ERC||N/A||5% year 1, 4% year 2, 3% year 3, 2% year 4, 1% year 5|
|10 year fixed ERC||N/A||5% years 1-4, 4% year 5, 3% year 6, 2% year 7, 1% year 8|
|Fixed for Life ERC||N/A||5% in years 1-4, 4% in year 5, 3% in year 6, 2% in year 7, 1% in year 8|
|Min / Max Term||Minimum of 5 years from age 50, maximum term of 41 years||From age 50, no maximum term as no end date required|
|Repayment vehicle||Sale of property, cash in of investments or assets at end of term||Sale of property upon death or entry into long term care|
|Valuation Fees||Free up to and including property values of £1 million. Properties over £1 million will have the £1 million survey fee amount deducted|
|Legal Fees||Free for standard remortgage|
|Proc Fee||0.55% if through a Club or Network. 0.35% if paid direct|
|Location||England, Wales and Mainland Scotland|
|Legal Fees||Free for standard remortgage|
|Minimum Property Value||£120,000 (require £100,000 minimum equity)||£100,000|
|Maximum Property Value||£3 million for properties outside London. £5 million for properties in London and designated high value areas|
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 Applicants||Beyond 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
- 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).
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. Downsizing Protection is also available for our RIO Fixed-for-Life product (please see our Product Summary for more details).
The property must form a suitable security for the 50+ Mortgage. We accept a range of property types.
Documents & Forms
- Residential Mortgage DiP Application Form
- Residential Mortgage Customer DiP Declaration
- Residential Mortgage Application Form
- Residential Mortgage Application Customer Declaration
- Residential Mortgage Direct Debit Mandate
- Moving Home Application Form
- Adding/Removing A Person Form
- Residential Mortgage Additional Property & Buy-To-Let Form
- 50+ & RIO Mortgage Introduction
- Residential Mortgage At A Glance
- RIO Mortgage - Product Summary
- Residential Mortgage & Holiday Let Property Eligibility Factsheet
- Residential Mortgage & Holiday Let Criteria And Affordability Guide
- Submission Packaging Guidelines
- Tariff of Mortgage Charges
- Loan To Value Table
- Residential Mortgages Terms And Conditions 1.5
Frequently Asked Questions
The 50+ Mortgage is an interest only fixed term, residential mortgage available from age 50 with a maximum term to age 95. 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.
The 50+ Mortgage requires minimum equity of £100,000 whereas the RIO Mortgage has no minimum equity requirement.
With loans from £20,000 the minimum property value for 50+ Mortgage is £120,000, for the RIO Mortgage it’s £100,000 due to us not needing £100,000 minimum equity.
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. Downsizing Protection is available for our 50+ RIO Fixed-for-Life product (please see our Product Summary for more details).
We can lend a maximum of 60% 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 fixed rates.
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.