Mortgages for later in life
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Important information: your mortgage and the stamp duty holiday
Ahead of the stamp duty holiday deadline on 31 March please be aware we cannot guarantee your mortgage will complete in time for you to be eligible. This particularly applies for purchase applications and any remortgages where additional borrowing for any onward purchase is required.
For information about the stamp duty holiday and rates which will apply from 1 April please click here.
At Ipswich Building Society, we’re pleased to offer a mortgage range for those looking to purchase a property or remortgage their existing home aged 50 and over. Borrowing in later life brings with it a set of unique needs as well as changing sources of income and lifestyle, which our underwriters can take into consideration when dealing with mortgage applications from older borrowers.
With no maximum age restriction and up to a 40 year term, we can offer loans available on an interest only basis up to 50% Loan To Value (LTV) providing there is a minimum of £150,000 equity in the property. For borrowers seeking capital and interest repayment, we’re able to consider applications up to 75% LTV.
Enabling borrowing into later life
At Ipswich Building Society, we understand that people are still working well into their 60s, hold a healthy pension income, or have investments or inheritance that could be used to repay a mortgage. Our Retirement Mortgage Programme means we can accept 100% of an older borrower's pension and our manual underwriting process means we can consider a proportion of other forms of income when assessing affordability.
Our later life mortgage products
Later Life 2.25% 2 Year Discount Rate 75% LTV
- VARIABLE RATE of 5.24% with a discount of 2.99% for 2 years from completion, then reverting to 3.50% (Ipswich SVR minus 1.74%) for 36 months then changing to Ipswich Standard Variable Rate (currently 5.24%)
- 4.1% APRC
- For purchase and remortgage up to 75% LTV
- Exclusively for borrowers aged 50 or over
|Completion Fee||Application Fee (Payable with application and non-refundable)||Valuation Fee (Payable with application)||Higher Lending Charge||CHAPS (Fee for transfer of funds to solicitor)||Maximum Loan Amount|
|£500||£199||Purchase: based on property valuation. Remortgage: FREE||-||£35||£750k|
Unlimited fee-free overpayments
No early repayment charge
For remortgage only: fee assisted legals
FIXED EXAMPLE: A mortgage of £228,600.00 payable over 20 years initially on a fixed rate until 31/12/2022 at 2.50%, then on our Standard Variable Rate currently at 5.24% with a discount of 1.74%, giving a pay rate of 3.50% until 31/03/2026, then on our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term. This would require 27 monthly payments of £1,214.19, followed by 39 monthly payments of £1,316.86, followed by 174 monthly payments of £1,474.57. The total amount payable would be £341,249.85 made up of the loan amount plus interest (£111,580.85), an application fee of £199, a completion fee of £500, a valuation fee of £240, a mortgage funds release fee of £35 and a mortgage discharge fee of £95. The overall cost for comparison is 4.2% APRC representative.
DISCOUNT EXAMPLE: A mortgage of £150,000.00 payable over 15 years on our Standard Variable Rate currently at 5.24% with a discount of 1.99%, giving a current rate payable of 2.25% for 24 months, then on our Standard Variable Rate currently at 5.24% with a discount of 1.74%, giving a rate payable of 3.50% for 36 months, followed by our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term. This would require 24 monthly payments of £986.13, followed by 36 payments of £1,064.55, followed by 120 payments of £1,154.55. The total amount payable would be £200,990.92 made up of the loan amount plus interest (£50,001.92), an application fee of £199, a completion fee of £500, a valuation fee of £160, a mortgage funds release fee of £35 and a mortgage exit fee of £95. The overall cost for comparison is 4.1% APRC representative.
Key features of our mortgages into later life
- Available to direct customers across England and Wales
- At least one borrower must be aged at least 50 at the start of the loan
- Available for loans up to 75% LTV - Interest only up to 50% LTV, provided there is at least £150,000 equity in the property. Loans are available from £25,000 to £750,000 (see individual product details)
- Minimum term 5 years, maximum term 40 years
- No maximum age limit