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A married couple raised funds to gift their daughter a deposit on a house by remortgaging to interest only with property downsizing.
At Mansfield Building Society we offer mortgage lending into retirement. Our residential lending is available in the UK in England, Wales and Scotland*, we do not lend in Northern Ireland.
There can be many reasons why people take out mortgages in retirement. At Mansfield Building Society, we can help with things like capital raising for home improvements, to help consolidate debts (subject to terms and conditions), to help gift a loved one a deposit on a house or simply to support affordability on a house purchase by extending the term into retirement.
For our standard residential lending, the mortgage must be repaid before age 85 for both capital repayment and interest only mortgages. Where the mortgage is to be repaid between age 70 and age 85 we allow up to a maximum of 70% Loan to Value (LTV) for all repayment types.
Where the mortgage is to be repaid in retirement, we will use 100% of the gross pension income for our calculations when assessing affordability.
Joint borrowers will be assessed based on you being individually able to support the mortgage. Independent legal advice and a Lasting Power of Attorney may be recommended or required as a condition of the offer.
Whilst we can offer Retirement Interest Only (RIO) mortgages, these are exclusively available via CeRER or CertER Equity Release qualified intermediaries.
Speak to a mortgage adviser who will be able to talk through your circumstances in more detail. Call us on 01623 676345 or enquire online.
*Selected postcode restrictions apply in Scotland, for full details please see our Residential Mortgages Important Information.
| Term | 2 years |
| Initial Rate1 | 5.85% |
| Overall Cost For Comparison2 | 7.3% APRC |
| MAX LTV3 | 80% |
| Early Repayment Charge | 2% in Year 1, 1% in Year 2 |
| Product Fees | £199 Application Fee, £800 Completion Fee |
A £1,000 Completion Fee added to the loan amount would increase in value over the term of the mortgage and an illustrative example is provided below based on a static rate over a 10, 15 or 25 year term.
Fee Amount |
Rate |
Value of the fee with interest at 10 years |
Value of the fee with interest at 15 years |
Value of the fee with interest at 25 years |
| £1,000 | 7.15% | £1,715.00 | £2,072.50 | £2,787.50 |
| Term | 2 years |
| Initial Rate1 | 5.65% variable |
| Overall Cost For Comparison2 | 7.2% APRC |
| MAX LTV3 | 80% |
| Early Repayment Charge | 2% in Year 1, 1% in Year 2 |
| Product Fees | £199 application fee, £800 completion fee |
A £1,000 Completion Fee added to the loan amount would increase in value over the term of the mortgage and an illustrative example is provided below based on a static rate over a 10, 15 or 25 year term.
Fee Amount |
Rate |
Value of the fee with interest at 10 years |
Value of the fee with interest at 15 years |
Value of the fee with interest at 25 years |
| £1,000 | 7.15% | £1,715.00 | £2,072.50 | £2,787.50 |
| Term | 2 years |
| Initial Rate1 | 6.25% variable |
| Overall Cost For Comparison2 | 7.3% APRC |
| MAX LTV3 | over 80% and up to 90% |
| Early Repayment Charge | 2% in Year 1, 1% in Year 2 |
| Product Fees | £199 application fee, £800 completion fee |
A £1,000 Completion Fee added to the loan amount would increase in value over the term of the mortgage and an illustrative example is provided below based on a static rate over a 10, 15 or 25 year term.
Fee Amount |
Rate |
Value of the fee with interest at 10 years |
Value of the fee with interest at 15 years |
Value of the fee with interest at 25 years |
| £1,000 | 7.15% | £1,715.00 | £2,072.50 | £2,787.50 |
| Term | 2 years |
| Initial Rate1 | 6.29% |
| Overall Cost For Comparison2 | 7.3% APRC |
| MAX LTV3 | Over 80% and up to 90% |
| Early Repayment Charge | 2% in Year 1, 1% in Year 2 |
| Product Fees | £199 Application Fee, £800 Completion Fee |
A £1,000 Completion Fee added to the loan amount would increase in value over the term of the mortgage and an illustrative example is provided below based on a static rate over a 10, 15 or 25 year term.
Fee Amount |
Rate |
Value of the fee with interest at 10 years |
Value of the fee with interest at 15 years |
Value of the fee with interest at 25 years |
| £1,000 | 7.15% | £1,715.00 | £2,072.50 | £2,757.50 |
| Term | 2 years |
| Initial Rate1 | 5.53% variable |
| Overall Cost For Comparison2 | 7.1% APRC |
| MAX LTV3 | 75% (70% for loans over £750,000 and under £1m) |
| Early Repayment Charge | 2% in year one, followed by 1% in year two |
| Product Fees | £199 application fee, 0.50% completion fee |
A £1,000 Completion Fee added to the loan amount would increase in value over the term of the mortgage and an illustrative example is provided below based on a static rate over a 10, 15 or 25 year term.
Fee Amount |
Rate |
Value of the fee with interest at 10 years |
Value of the fee with interest at 15 years |
Value of the fee with interest at 25 years |
| £1,000 | 7.15% | £1,715.00 | £2,072.50 | £2,787.50 |
A retirement mortgage can be any mortgage that is either taken out in retirement or extends into retirement. This can be a standard residential mortgage or a Retirement Interest Only (RIO) mortgage.
Retirement Interest Only (RIO) mortgages are different from standard residential mortgages because they have no maximum age at the end of the mortgage term. The loan is taken out on an interest only basis, where the repayment strategy for the capital must be the sale of the property when the surviving borrower moves into long term care or dies.
RIO mortgages are an alternative to Equity Release, enabling retired borrowers to raise funds against the equity in their property.
The mortgage must be repaid before age 85.
Yes, we can offer mortgages for people over 70 years old. When the mortgage is to be repaid between age 70 and age 85, we can lend up to 70% loan to value of the property.
Yes, we will use 100% of the gross pension income when assessing affordability.
This depends upon your circumstances and the type of mortgage you are applying for. As we get older, we can become more at risk of becoming vulnerable to conditions such as dementia. Independent legal advice can be recommended or required to help protect you and your financial affairs at a future date if you were to become ill.
For example, independent legal advice is required for our Retirement Interest Only (RIO) mortgages to ensure there is a Lasting Power of Attorney in place.
A Lasting Power of Attorney is someone that can help you manage your health and welfare and/or your financial affairs if you are unable to do so yourself. By having a Lasting Power of Attorney in place, there is someone who has a legal right to help on important matters on your behalf.
Case Study: Raising Funds in Retirement
A married couple raised funds to gift their daughter a deposit on a house by remortgaging to interest only with property downsizing.
Case Study: Purchasing a Property with Son
The Bank of Mum and Dad helped their son get on the ladder by purchasing a property with him, extending their mortgage into retirement.
Your home may be repossessed if you do not keep up repayments on your mortgage
Want to ask us a specific question? Enquire online here or phone us on 01623 676345
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