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We do not accept applications where all borrowers are retired at the time of completion.
We do accept applications where all borrowers are retired after the point of completion and within the term of the loan.
The term may be restricted by our maximum lending age of 85.
If the borrower(s) are retiring within 10 years then we will require their expected retirement income. This can consist of pension, rental and/or investment income and should be entered under the ‘Expected retirement income field’. The affordability calculations will then be run using the lower of the current or expected retirement income. Both current & future income will need to be verified.
If a borrower is not retiring within 10 years but will be retiring during the mortgage term we will need to see evidence that the borrower is making pension contributions or has retirement funds in place.
- For employed customers this can be in the form of pension deductions on a payslip. If there are no pension deductions visible on payslips, then evidence of a private pension, rental income and/or investment income will be required.
- For self employed borrowers we will want to see evidence of a private pension, rental income or investment income.
👫 Customer Scenario 1 John and Sarah are both 66 years old and they are looking to retire at age 70 with a respectable pension income. They would like to buy a home for themselves to live in and would like to take the mortgage term to age 85 to keep the payments low.
👫 Customer Scenario 2 Holly and Lynn are both aged 68 and retired within the last 5 years. They’re looking to re-mortgage with additional borrowing for home improvements.
👨👩👦 Customer Scenario 3 Holly and Lynn then see the Income Booster proposition and ask their son Nigel to join the mortgage application. Nigel is 30 and looking to retire at the age of 60.