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Lending into Retirement Downsizing

An interest only mortgage that allows downsizing as the repayment vehicle when the loan will be repaid in retirement.

Product Criteria

  • Interest Only subject to sale & downsize of main UK residence as repayment strategy
  • Minimum equity £250,000 (without geographical restriction)
  • We can consider cases below this level if other assets are in place or if it is appropriate to the geographical area. Subject to Underwriter assessment
  • Examples of property available for downsizing to in planned retirement area required
  • Evidence of retirement income required
  • Minimum loan size £30,000
  • Maximum loan size £1,000,000. Loans over this are priced on a bespoke basis and have restricted LTV’s
  • Must not be more than 5 years from retirement
  • Maximum term determined by ONS tables

The interest rate charged will not fall below 2.00% (the minimum interest rate) at any point during the mortgage.

Lending into Retirement Downsizing

Lending Into Retirement Downsizing [Interest Only]

Initial rate

2.69% (variable)

Product period

Three Years

4.39%

Deposit required

40.00%

The overall cost for comparison is

3.90% APRC

Arrangement fee

£999

Your home may be repossessed if you do not keep up payments on your mortgage