Frequently asked questions

55+ Mortgage

What are the main differences in your 55+ Mortgage and your 55+ RIO products?

The 55+ Mortgage is an interest only fixed term, residential mortgage available from age 50 with a maximum term of 41 years. At the end of the term a repayment vehicle such as downsizing is required to repay the capital.

The 55+ RIO, also an interest only residential mortgage, available from age 50 has no end date. The capital is repaid upon death or entry into long term care.

The 55+ Mortgage requires minimum equity of £150,000 whereas the 55+ RIO has no minimum equity requirement.

With loans from £20,000 the minimum property value for 55+ Mortgage is £170,000, for the 55+ RIO it’s £100,000 due to us not needing £150,000 minimum equity.

Will I have to make any repayments?

Yes. The interest must be paid each month.

For the 55+ 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 55+ RIO, the capital is repaid on death or entry into long term care. Downsizing Protection is available for our 55+ RIO Fixed for Life product (please see our Product Summary for more details).

How much can I borrow?

We can lend a maximum of 70% Loan to value on both mortgages with loans from £20,000 to £1,500,000.

The final amount we’ll lend is based on our assessment of your 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 55+ 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 55+RIO, the capital is repaid on death or entry into long term care.

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

How often can the Standard Variable Rate ("SVR") change?

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.

Can your 55+ range of mortgages be repaid at any time?

The loan can be repaid at any time however, an early repayment charge applies for the first two years for two year fixed rates, the first five years for five year fixed rates and the first eight years for ten year and Fixed for Life fixed rates.
Please 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.

What happens if my circumstances change?

Our 55+ Mortgages are portable so can be transferred with a house move. The costs involved in transferring are the responsibility of you as the borrower, and the new property must form suitable security for the mortgage.

Paying interest on the loan could impact future income levels needed to fund retirement. We encourage you to discuss retirement plans with your Adviser to ensure changes to circumstances can be accommodated.

Do your 55+ Mortgages conform to the standards laid down by the Equity Release Council?

Our 55+ Mortgages are not equity release lifetime mortgages. They don’t fall within the remit of the Equity Release Council's product standards. This means they dont not offer the safeguards traditionally associated with equity release products.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

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