Remortgaging into retirement 2 year discount

Remortgaging into retirement 2 year discount

Affordability can be assessed using earned income up to retirement age. Once you reach retirement, affordability for the remainder of the term will be calculated using verifiable income from a pension or other sustainable source, such as investments or rental income.

With our lending into retirement products, affordability can be assessed in a number of ways:

1. If the term does not extend past age 79 (for males) or age 83 (for females), then our standard affordability assessment can be applied.
   Please note, if you have an interest only application you will still need to meet our standard interest only criteria in terms of repayment vehicles.
2. Where the term extends past these ages if both applicants are retired but cannot prove affordability in sole name, applications will be considered where there is enough equity available to downsize to a two-bedroom flat/house within 25 miles of the mortgage property.

Free standard valuation: We'll cover the cost of a standard valuation on a property valued up to £400,000. Properties valued over £400,000 will receive a contribution of £350 towards the cost.

Fees assisted legals: You have the choice of choosing our own solicitors, where we'll cover the cost of any standard legal fees, or receiving £250 cashback towards your own solicitor's costs. You'll be advised of any non-standard costs that will apply. If you choose to use our solicitors, they'll only act for us and won't provide you with independent advice regarding the mortgage transaction.

There is an arrangement fee of £999.00. This fee can be taken off the mortgage amount, or you can add the fee to the amount you borrow. If you choose to add the arrangement fee to your mortgage you will pay interest on the fee at the same rate as your mortgage. If you choose to take the arrangement fee off the mortgage, this will be deducted from the amount you borrow and so, you will need to pay the arrangement fee to your solicitor at completion.

There is a minimum mortgage amount of £50,000.00.

This product has a maximum mortgage amount of £1,250,000.00.

We have a minimum property value of £100,000 which increases to £250,000 for properties located within the M25 corridor.

The maximum loan to value is 75%.

The interest rate is floored which means that the rate cannot fall below 4.89%.

The minimum repayment term is 5 years and the maximum repayment term is 40 years. Maximum term will depend upon individual circumstances, for example applicant age and leasehold property restrictions.

Early Repayment Charges apply during the product term. You can overpay up to 10% of the original mortgage amount each calendar year without charge. However, if the overpayment exceeds 10%, the mortgage is repaid in full, or switched to another product before the end of the product term then the full amount of the Early Repayment Charge will apply.

The Early Repayment Charge will be calculated at:

• 3% of the amount repaid until 28 February 2025; and
• 2% of the amount repaid until 28 February 2027.

The mortgage tariff of charges details the various fees and charges that may apply during the term of your mortgage. To view these, please click here.

A mortgage of £278,131 payable over 35 years initially on a discounted variable rate until Sunday, 28 February 2027, currently 5.64% (equal to a 2.65% discount from our SVR) and then our SVR, currently 8.29% for the remaining term would require an initial payment of £1,568.01 followed by 23 monthly payments of £1,524.67, and 396 monthly payments of £2,023.43.

The total amount payable would be £838,063.70 made up of the mortgage amount plus interest (£559,782.70), with an arrangement fee of £999.00, a telegraphic transfer fee of £25.00 and mortgage exit fees of £125.00.

The overall cost for comparison is 8.1% APRC representative.