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Lending into retirement using pension income at a higher income multiple

A residential mortgage case study


The clients were two retired applicants who were approaching the end of term on their interest only mortgage with a high street lender and wanted to remortgage to redeem the outstanding balance.


Their current mortgage was arranged when both of the applicants were working and earning reasonable incomes. Their incomes are now much lower and consist of private and state pensions.


We were able to select a lender that does not have a maximum age limit and will consider income multiples of up to 6 times. As this was a straight swap with no capital raising, the applicants were able to remortgage to this new lender into their 80s, with sale and downsize of current property as their repayment vehicle.


The clients were extremely happy to be able to remain in their family home until they were ready to downsize.


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