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)
- The 50+ product is available on an interest only or repayment basis and both products can be used for purchase or re-mortgage
- 2 year or 5 year fixed rates or 2 year discount, reverting to SVR
- 2, or 5 year ERCs based on the product chosen
- 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.
Where interest only is chosen, a suitable repayment vehicle such as sale of property must be in place for the 50+ mortgage. We don’t require a repayment vehicle for the RIO as the mortgage is repaid on the sale of their home when either your customer moves into long term care or passes away.
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+ Mortgage | RIO Mortgage |
| 2 year discount rate (Maximum LTV of 60%) | 2.79% (£995 product fee) 2.90% (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%) | 2.89% (£995 product fee) 3.00% (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%) | 2.70% (£995 product fee) 3.05% (Fee free) | 2.90% (£995 product fee) 3.05% (Fee free) |
| 5 year fixed rate (Maximum LTV of 60%) | 2.90% (£995 product fee) 3.25% (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% |
| APR | Please view our product Matrix for information on APRs | |
| 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 | 5% 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 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. (For 50+ Interest Only) | 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 | |
| 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) | £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 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
- 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
- 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 a residential mortgage available from age 50 where your customer can determine the length of the loan and the repayment method. This can be repayment or interest only. A repayment vehicle is required to repay the remaining mortgage.
The RIO mortgage is an interest only residential product available from age 50 with no term end date. The mortgage is repaid from the sale of their home when either your customer moves into long term care or passes away.
Where your customer opts for interest only on the 50+ mortgage they will make interest payments monthly. There must be sufficient means to repay the mortgage at the end of the term. This could be through sale of property (main residence or second home) or cashing in investments or assets.
Where your customer opts for a repayment mortgage and makes all of their payments, they will have repaid their mortgage at the end of the term.
For RIO, the mortgage is repaid from the sale of their home when either your customer moves into long term care or passes away.
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 224 8754).
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 50+, where your customer opts for interest only, we must be satisfied that the repayment vehicle chosen is of sufficient value to repay the mortgage at the end of the term. We’ll contact your customer during the mortgage to ensure their repayment vehicle remains credible and on track to repay the mortgage 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.
All our residential mortgages benefit from the Chester Royal Early Repayment Promise. If you repay your loan because you sell up and vacate your property permanently then we will waive the early repayment charge.