Older borrower cases made simple with Suffolk Building Society.

Few lending areas have seen such development as those for applicants over 55. When it comes to later life borrowers it’s not just about swapping an existing mortgage deal – we’re seeing an increasing amount of previously mortgage-free clients choosing a mortgage to fund later lifestyle choices.

And, for your clients taking a mortgage in or into retirement, this is where expert, manual underwriting can really help, as we’ll take a close look at your case rather than relying on a computer to make decisions for us.

Joan & Jim: case study.

Silver 60’s remortgaging to clear existing mortgage + gift funds to family.

  • Current mortgage £150k
  • Additional gift to children £100k
  • £250k new mortgage on property value of £750k
  • Both applicants are enjoying retirement but want to keep costs to a minimum – interest only is the preferred option.
  • They have SIPPs and a private pension currently (and state pension due to kick in within the next couple of years).
  • Drawdowns from the SIPP are sporadic – they only take income as needed and are using their savings for day-to-day living.

Affordability: the calculations.

  • Based on the private pension and what can be evidenced in the SIPP we can look to use both for affordability.
  • Private pension – £30,000 p/a & SIPP value – £600,000 (x 80% of fund [buffer for fund fluctuations] = £480,000, / 15 year term = £32,000 p/a for the term of the mortgage)
  • Total usable income of £62,000 per annum.
  • Using the SIPP in the background made all the difference – we were able to lend £250,000 on an interest only basis over a 15 year term.

Cheers to that!
The mortgage will take the applicants into their mid-70’s, on an interest only basis, with additional borrowing to support family, with downsizing as the repayment vehicle.

Good to know: we will now take the increased state pension, rising by 3.1% effective 6 April, on all applications submitted.

3 things to know about our later life offering.

  1. No max age limit for capital and interest mortgages. Interest only capped at 95 at the end of the term.
  1. Later life available on standard product range. Max 75% LTV for applicants borrowing into retirement, or 70% LTV for applicants in retirement.
  1. Up to 40-year term. Max 30 years for buy to let.

Get in touch.

Whether you are placing a case for a first time buyer or later life borrower, a self builder or a small-time landlord and more, you can always speak to us. And, don’t forget, our expert underwriters consider every application individually, so where others see numbers, we see people.

E:         bdt@suffolkbuildingsociety.co.uk

T:         0330 123 1073 (option 1)

W:        www.suffolkforintermediaries.co.uk

Submit your cases to us online by registering with our panel.

All details and lending criteria correct as at 15 March 2022