Eligibility

Am I eligible for the 55+ Mortgage?

In order to be eligible for the 55+ Mortgage you need to be able to demonstrate that you can afford the loan, and that you can repay it at the end of the term. Your property must also form suitable security for the loan.

Affordability

When you apply, we will ask you to demonstrate to us the level of income to which you are entitled, and the level of outgoings you incur. We will use this information to assess your ability to afford the loan.

If you are still working, we will need to know your employment income. If the loan term extends beyond your expected retirement date, you must benefit from a reasonable level of income in retirement in order to be eligible for the 55+ Mortgage. The sources of retirement income which we will take into account include:

  • Pension income or future entitlements
  • Investment income
  • Rental income

Repayment strategy

You must also have a suitable strategy in place to repay the loan at the end of the term. You may combine more than one repayment strategy, but their total value must be sufficient to repay the loan. The repayment strategies which we will accept include:

  • Sale of your home when you downsize to a more manageable property in later life
  • Sale of other property you own
  • Sale of investments
  • Proceeds of a maturing endowment policy.

Property eligibility

Your property must also form a suitable security for the 55+ Mortgage. The table below summarises the types of property which are acceptable.

Type of property
  • Houses (freehold or leasehold)
  • Bungalows (freehold or leasehold)
  • Flats (leasehold)
  • Mainsonettes (leasehold)

There must be a minimum of 90 years unexpired term on your property’s lease.

If your property is a flat, it must be in a private block of 7 stories or fewer.

Construction method

Your property must be of standard traditional construction:

  • Walls – brick, stone or block
  • Roof – concrete, slate or stone tiles
Past events Your property must not have recently been affected by flooding, subsidence or other structural issues.

This is only a summary of our eligibility criteria. If you have any questions, please contact us and we will be happy to help you.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.