Lending into retirement Q&A

Do you have clients who are retired or about to retire and are looking to get a mortgage?

We understand that people are living for longer and therefore, as a lender, it is our responsibility to ensure we offer the right services and products at the right time to enable borrowers to fulfil their retirement ambitions. 

Below, BDM Jordan Sharpe answers your frequently asked questions about this type of lending.

What is the criteria for a mortgage with NBS if my client is retired?  

Your clients shouldn’t be limited by age when applying for a mortgage. That’s why we take applicants up to the age of 90 by using pension and investment income.  

Our lending into retirement criteria includes the following: 

  • A maximum LTV of 75% 
  • A maximum age at end of term of 90 years 

We are happy to consider both repayment mortgage and interest-only (at 70% LTV) with a suitable repayment vehicle. What’s more, survivorship income is also assessed. Read Mr and Mrs Marshall’s story for further insight

We also have a RIO (retirement interest only) product which works different as the term is endless. 

Do you offer any retirement specific products?  

We offer a Retirement Interest-Only mortgage product. To be eligible, applicants must be a minimum age of 60 years old. There is no maximum age, but borrowers must be retired and in receipt of their pension. 

The mortgage term is endless, no repayment vehicle required, and survivorship income assessed; a good product for those who do not want to downsize their property and wish to remain in their home. 

In your opinion, what do retiring customers want? 

What we provide at Newbury Building Society: an easy mortgage application with a smooth process from start to finish. Reassurance from a lender who understands their borrowing needs is key.  

What is Newbury’s approach to lending into retirement? 

We understand every individual has unique circumstances and lending to applicants who are retired is no different. For example, we do not credit score and all cases are assessed on individual merit.  

In addition, we can use a variety of retirement incomes to boost affordability as well as assist with intergenerational gifting. 

My client is in her 60’s and wants to remortgage her property; is this possible with you? 

Yes absolutely! Depending on her specific situation and requirements we may look at this using earned income, if she’s still working or later life lending (term dependent). The application could also be considered on a like-for-like remortgage basis or capital raising. 

Why should I speak to Newbury about a mortgage for my client? 

Our individual underwriting and personal approach make us more than just a lender. We take a common-sense approach to assessing each mortgage application and aim for a sleek and painless process, in line with the applicant’s expectations. Our CeMap qualified BDM’s and experienced underwriters make us stand out from other lenders. 

If you have any further questions about how we can help your clients, please contact us today. Our helpdesk is open Monday to Friday, 9am – 5pm. 

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