The Society will consider mortgage applications where the term extends beyond the borrower’s expected retirement age, normally up to maximum age 85, where the borrower can clearly demonstrate a sustainable income stream to ensure the mortgage continues to be affordable throughout the term of the mortgage, including following any change in circumstances during the term, such as retirement.
The Society will take a prudent and proportionate approach to assessing the applicant’s income beyond retirement date.
The closer the customer is to retiring, the more robust the evidence of the level of income in retirement should be.
For guarantor cases, where the personal guarantor is making a contribution towards the mortgage payments and will be in retirement, an appropriate affordability assessment will be conducted, in line with the above.
Maximum Age
The following table states the borrower’s maximum age where the Society would normally expect the borrowing to be repaid:
|
Product |
Normal Maximum Age |
|
Owner-Occupier |
85 |
|
Retirement Interest-Only |
No Maximum |