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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.

We have 5 products available

2 Year Fixed Rate – DIX271

Term 2 years
Initial Rate1 6.19%
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
  • The £199 Application Fee is non-refundable and payable at the point of application
  • The Completion Fee can be paid before completion or added to the loan. If the Completion Fee is added to the loan amount, interest will be charged on the amount of the fee and this will be reflected in the monthly repayment over the term of the mortgage

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

2 Year Fixed Rate – DIX270

Term 2 years
Initial Rate1 5.89%
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
  • The £199 Application Fee is non-refundable and payable at the point of application
  • The Completion Fee can be paid before completion or added to the loan. If the Completion Fee is added to the loan amount, interest will be charged on the amount of the fee and this will be reflected in the monthly repayment over the term of the mortgage

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

2 Year Discounted Variable Rate – DID169

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
  • The £199 Application Fee is non-refundable and payable at the point of application
  • The Completion Fee can be paid before completion or added to the loan. If the Completion Fee is added to the loan amount, interest will be charged on the amount of the fee and this will be reflected in the monthly repayment over the term of the mortgage

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

2 Year Discounted Variable Rate – DID166

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
  • The £199 Application Fee is non-refundable and payable at the point of application
  • The Completion Fee can be paid before completion or added to the loan. If the Completion Fee is added to the loan amount, interest will be charged on the amount of the fee and this will be reflected in the monthly repayment over the term of the mortgage

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

2 Year Discounted Variable Rate – DID168

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
  • The £199 Application Fee is non-refundable and payable at the point of application
  • The Completion Fee can be paid before completion or added to the loan. If the Completion Fee is added to the loan amount, interest will be charged on the amount of the fee and this will be reflected in the monthly repayment over the term of the mortgage

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

Retirement Mortgages Frequently Asked Questions

Show FAQ - What is a retirement mortgage?

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.

Show FAQ - What is a Retirement Interest Only 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.

Show FAQ - What is your maximum age for mortgages?

The mortgage must be repaid before age 85.

Show FAQ - Do you offer mortgages for those over 70 years old?

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.

Show FAQ - Can I use my pension for mortgage affordability?

Yes, we will use 100% of the gross pension income when assessing affordability.

Show FAQ - Do I need independent legal advice for a retirement mortgage?

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.

Show FAQ - What is a Lasting Power of Attorney & why would I need one?

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.

man and woman on sofa pointing at laptop

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.

An adult son moves out of his parents' home

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.

Definitions

1. Initial Rate

The Initial Rate is the rate available during the initial term of the mortgage. Once the initial rate term has expired, the mortgage will either revert to our Standard Variable Rate (SVR), or a follow-on rate that is a discount off our SVR. Our SVR is set by us and is currently 8.89%, as a variable rate it may go up or down. Our follow-on rate is 1.74% below our SVR and is currently 7.15% variable. Our follow-on rate will go up or down with changes to our SVR.

2. Overall Cost for Comparison

The Overall Cost for Comparison is given as the Annual Percentage Rate of Charge (APRC) and includes all charges incurred relating to the mortgage. The APRC is intended to help you as a borrower compare the interest rates on different products.

3. Max LTV

Like all other mortgage lenders, we will allow you to borrow against a proportion of the overall property value. This is known as Loan to Value (LTV) and is expressed as a percentage. For example, if you want to purchase a property at £100,000 and you would like to borrow £85,000, then you will need a mortgage available at 85% Loan to Value (LTV). The available LTV can vary depending upon the type of mortgage. Shared Ownership mortgages will offer two percentages under LTV - the proportion of the property value and the proportion of the share being purchased.

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

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