Accord Mortgages is updating its criteria this week to better support residential interest only borrowers who are already retired or whose mortgage term would take them into retirement.
Accord will now consider interest only lending for borrowers who are already retired and want to use pension income to help with affordability, as long as the customer is no older than 70 years of age when the interest only term ends. Retired borrowers not using pension income however can be up to 80 years of age at the end of the mortgage term.
Borrowers planning to retire during the term of their mortgage can also be considered for an interest only term into retirement, if their income is not being used for affordability.
Accord will also consider joint interest only applications, where one borrower is retired or plans to retire during the mortgage term, as long as the second borrower will not be retiring at any point in the term, and can support the application’s affordability.
All interest only borrowers will still need to have a suitable repayment vehicle in place to repay the capital on their mortgage at the end of the mortgage term.
Nicola Alvarez, senior manager for new propositions at Accord, said: “We’re really pleased to be expanding our common-sense lending criteria to better support those who have taken early retirement or who plan to retire during their mortgage term.
“These changes give borrowers greater flexibility to fulfil a better retirement thanks to lower monthly repayments and we’re sure brokers will welcome being able to offer more options to clients in this position.”
Latest News
Perenna and the long-term fixed mortgage market
Content editor, Dan McGrath, spoke to head of product, proposition and distribution at Perenna, John Davison, to explore the long-term fixed mortgage market, the role that Perenna plays in this sector and the impact of the recent Autumn Budget
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories