Buckinghamshire Building Society solutions for Older borrowers

21 February 2019

In 2020 - 11.98m people will have reached state retirement age and currently 75% of the UK’s housing wealth is held by people aged over 50…

We understand that more business is coming from older borrowers who are looking to borrow more or to re-structure their mortgages. We were one of the first to lend to those in, or approaching retirement and we are continuing to support later life lending, offering no maximum age limit at inception or termination of the mortgage contract and with terms of up to 40 years. If you have customers looking for conventional retirement mortgages. Why not contact us today and discuss your cases. We can offer a real choice to older borrowers who have retired and are in receipt of income.

Did you know?

We can set up retirement mortgages on a joint borrower sole proprietor basis so that adult children can support their parents’ mortgage payments in retirement?
We can allow up to 4 applicants in multi generational households?
We have no Maximum age limit on our BTL mortgage range?

Features of our retirement products

Earned income can generally be taken up to the age of 75 to support mortgage payments

Unearned Income sources - accepted after retirement age or 75 include:

Private Pension (Defined benefit and drawdown)
State Pension
BTL and Holiday Home rental income
Investment & Trust Income

Joint mortgages (with some exceptions) either applicant must be able to afford the mortgage in their own right using any inherited income from their partner.

Repayment/Interest only or Part & Part basis is available with a maximum LTV of 60%

Sale of property is acceptable as a repayment plan provided there is £130,000 equity in the property on day one and on the following basis

4+ Bed Property 60% LTV
3 Bed Property 50% LTV
2 Bed Property 40% LTV
1 Bed Property generally not available

Repayment plans for interest only loans up to 60% LTV can include

Equity in UK BTL or Holiday homes*
Further pension lump sums*
Investment portfolios*

(*The Dual Affordability rule does not apply to these cases)

Example:

Mr Brown is aged 58, employed and is looking to roll over his maturing interest only mortgage of £100,000 that has reached the end of its term. He cannot afford to convert the whole loan to a repayment basis over 14 years which would take him to his retirement age of 72.

SOLUTION

Loan Part 1 £45,000 Repayment 14 years which is affordable whilst employed

Loan Part 2 £30,000 Interest only 14 years repaid from pension lump sum at age 72

Loan Part 3 £25,000 Interest only/Repayment 40 years based on his projected state and private pensions of £22,000.

Mr Brown now has a personalised plan that will keep him in his property to the age of 98.

For more details and information visit www.bucksbs.co.uk/intermediaries or call our team directly Tel: 01494 879500 Email: intermediaries@bucksbs.co.uk To register for BrokerOnline click here to complete an on-line application.

This is intended for Professional Advisers and should not be disclosed or given to customers.