The Family Building Society – Later life lending – your questions answered

Many clients are turned down by high street lenders simply because they’re ‘too old’. The Family Building Society think that’s bonkers!

They do lend in retirement. How can they help your clients?

Q. My client is 65 and wants a 20 year mortgage – can they help? 

Yes! The Family Building Society lend in retirement with higher maximum ages than most lenders:

  • Owner Occupier repayment mortgages, up to a maximum age of 95 at the end of term.
  • Owner Occupier Interest-Only and Buy to Let mortgages, up to a maximum age of 89 when the loan commences.

Q. Will they take earned income into account? 

Yes! They’ll accept earned income to age 70, or up to 75 if the customer is in a professional career.

Q. What other income will you take into account? 

The Family Building Society will accept ‘non-earned income’ from a variety of sources such as: 

  • State and private pension
  • Rental and investment income
  • Pension pots (even if untouched currently)
  • Directors’ income (from those not involved in the day to day running of the company.)

Q. What special conditions does my later life client need to meet? 

None! Your client can get the same rates with the same terms. As long as they meet The Family Building Society’s normal lending criteria, they treat their older borrowers the same as their younger ones.

If your client is looking for something outside of their core range, they do offer specialist products such as their Retirement Interest-Only mortgage or Retirement Lifestyle Booster which have their own terms.

Q. What’s the maximum LTV on an Interest-Only mortgage? 

  • The Family Building Society offer Interest-Only mortgages across a range of products including discounted and fixed rates, up to 80% LTV.
  • They’ll consider Interest-Only lending even if the repayment vehicle is downsizing. In such cases, the maximum LTV is 70%.

Q. What will they allow capital raising for? 

They allow capital raising for home improvements, second homes and gifting to family members.

Find out more and see how they can help you clients here.

Semi-exclusive products

Did you know that on top of their standard range of products they have additional semi-exclusive products available via their packaging partners? Speak to you local Business Development Manager (BDM) for more information.

For more information on their mortgage products, please visit their website here or contact your local BDM here or their mortgage desk here.

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