Later life lending
By Stu Bryce, Head of Business Development, Chorley Building Society
When it comes to later life lending, it feels as though lenders will either lend up to a standard retirement age and stop or it's an all-out Retirement Interest Only (RIO) or an Equity Release.
Wouldn't it be lovely to have a normal mortgage, that can go beyond a normal retirement age and that can adapt to difference scenarios?
Welcome to the Chorley Building Society - We know that 'Later Life' borrowers are not all the same, nor is the solution to their borrowing needs, at The Chorley we take a different approach.
The product range accommodates those that will exceed the notional retirement age of 70 and those that exceed this age at application.
We will of course use pension incomes to assess affordability and the mortgage term is set at the outset. The mortgage balance is serviced with monthly repayments, there’s no interest roll up, the balance will not increase and it will be repaid by a specific date, either on a repayment basis to maximum age 90 years, or interest only up to age 85.
Interest Only needs a plan to repay, which can either be from a suitable repayment vehicle or through downsizing, subject to maximum Loan to Value and minimum equity requirements.
Aside of the pension income, whilst we all consider a retirement age to typically be somewhere between 65 and 70, there are plenty of people that would rather continue to work. If the job type is feasible, we'll allow an earned income to the age of 75. For company directors that are less hands on, with employees, we can potentially use the income to age 85.
We are also able to be flexible to accommodate the family in various ways, including the option to be added to a Joint Borrower Sole Proprietor mortgage application to bolster affordability for children or vice versa for children to support parents.
Another option that is becoming increasingly popular is inter-generations combining wealth and earnings to buy together - The ability to have 4 applicants, use up to 4 incomes and the ability to go beyond the retirement age of the eldest really does give flexibility in this scenario.
There are a lot more options for later life lending than you first think, come and talk to a real life underwriter at The Chorley about your case. Common sense lending.
For more information:
Phone: 01257 235 001
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