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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 on a discretionary basis if the property is in Northern England with suitable evidence.
  • 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 £3,000,000. Loans over this are priced on a bespoke basis and have restricted LTV’s
  • Must not be more than 10 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

6.09% (variable)

Then reverting to SVR minus 1.00%


Product period

Three years

Arrangement fee


LTV rate



7.20% APRC

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