We do not accept cases where all borrowers are either retired at the start of the mortgage or where all borrowers will be retiring at any point during the mortgage term.

If all borrowers are anticipating to retire or are already retired during the mortgage term then we will limit the their term to be in the line with their anticipated retirement age.

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 will then be calculated 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 income 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.

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We would be able to help them as both applicants would not exceed our maximum age of 85. We would however apply a buffer of 7 months to allow for the mortgage to complete. This would mean the term could not take either applicant over the age of 84 years & 4 months

👫 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.

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We would unfortunately not be able to help them as at the time of the mortgage completion neither owner would be either employed or self-employed

👨‍👩‍👦 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.

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With the addition of Nigel as an income booster we would be able help Holly and Lynn, as Nigel would be in employment/self-employment at the time the mortgage completed. Allowing the 7 months buffer Lynn & Holly could be offered a term up to 16 years and 4 months.