Lending into retirement

  • We will only use employed and self employed income where the term of the mortgage does not exceed the customers anticipated retirement age, or 70th birthday.
  • The maximum age at the end of the mortgage term is 75 years for all lending.
  • Future retirement income will need to be verified where the applicant is taking a mortgage term which extends beyond their anticipated retirement age or 70th birthday, whichever is the earliest
  • Affordability will be assessed on both the customer’s current income and the future retirement income. On occasions, a further review will be required to confirm we feel it is appropriate for the client to borrow into retirement.


Verifying Anticipated Retirement Income

The following evidence can be used to verify anticipated retirement income (all must be dated within the last 12 months):

  • Private / Company Pension Forecast Statement
  • State Pension Statement (obtained from www.gov.uk )
  • Annuity Statement


Other Income

  • If the applicant is in receipt of 'Other Income' this must be captured under the appropriate section of the 'Current Income' screen. If the current 'Other Income' is to continue into retirement this must be included along with any future pension income the applicant anticipates they will receive and captured in the 'Income into retirement' screen.
  • The 'Income into requirement' screen must only be populated with the future income the applicant anticipates they will receive once retired, including any pension they are currently in receipt of.


Client is already Retired

  • Lending into retirement policy treatment rules do not apply where an applicant is already retired.
  • It is important to remember that only pension income that the client is in receipt of at the point of application can be used and captured as 'Other income' within the 'Current income' section.
  • The affordability assessment will be carried out by the system on the income figure that has been entered into the 'Current income' screen.