Why we're experts in later life lending...
We offer a range of later life lending solutions to support your clients in retirement. From Older Borrower; a range of conventional mortgages available to applicants aged 55 to 85 with a maximum term based on the oldest client’s age at application, to Retirement Interest Only (RIO) mortgages; an alternative to equity release.
The Marsden were one of the first lenders to launch later life products, with two product ranges for your clients aged 55 and over; Older Borrower & RIO.
Our Older Borrower products work like a conventional mortgage product, however they’re available to applicants from the age of 55 to 85, with a maximum term based on the oldest client’s age at application. You can find out more on our criteria page but as an example, if your client is 85 at the time of application, we could lend on a maximum 5-year term to the age of 90.
A range of products
We have fixed and discount rate products available across our Older Borrower range on repayment or interest only up 60% LTV.
No dual affordability
Our Older Borrower products have a minimum income requirement of £17,500 per application (single or joint), which means there is no dual stress on joint incomes. We assess income like a conventional mortgage product, so we will use combined income to assess income multiples and affordability. If your client applies for an Older Borrower product on interest only, we’ll stress to interest only and not repayment.
We’ll accept a variety of incomes
We can accept a variety of incomes for our Older Borrower range, this includes state, private, SIPPs, and an element of earned income as well. We’ll also accept investment and rental income as long as this can be evidenced. We have a minimum property value of 150,000 and we will accept downsizing as the repayment vehicle, subject to a minimum equity requirement based on region.
Retirement Interest Only
Our RIO products could be an alternative to equity release and may be suitable for those who want to stay in their own home with no plans to downsize.
A range of products
As part of our RIO range, we offer interest only products up 55% LTV.
No maximum term
Our RIO products are purely interest only, so no capital is repaid until a life event occurs, therefore they have no term end date. Each applicant is assessed independently to ensure they can afford the interest repayment on their own, and your client will need to make the monthly interest payment throughout the mortgage term. The capital loan itself will be paid back on the occurrence of a life event when the property is sold, for example going into long-term care or passing away.
An alternative to equity release
Because the interest on a RIO mortgage is paid off monthly, there is no interest-roll up which may help protect the equity in your client’s property, so they can leave more behind to loved ones.
Why we’re experts…
We understand the needs of your later life clients, and we know that lending to those in retirement is different to lending to first time buyers in their 20s or 30s. As a responsible lender, we consider the affordability and suitability of our products for later life clients, and our affordability calculator takes into account the lifestyles of those aged 55 and over based on ONS data. You can access our calculator on our affordability calculator page.
We offer individual underwriting on all your cases, we don’t credit score, and we have a dedicated intermediary support team to help you with any questions or queries you may have. Find out more about our later life lending solutions on the dedicated product and criteria pages below.