We held our Into Retirement Webinar in September 2021, hosted by our Business Development Manager, James Green, and Underwriter, Anna Pullen.
This webinar provides information on the main drivers behind consumer demand in this market and details our lending in and into retirement underwriting requirements, as well as examples of how we have lent to mortgage borrowers in this area in the past. In addition to this, you will also be able to claim this as 1 hour for your CPD.
You can view the full webinar below.
How would you deal with understanding surviving spouse income if, for example applicant 1 earned £40k but applicant 2 was on state pension?
In the case where one applicant was on a lower income, we would expect some sort of life cover to be in place, in order to support the surviving applicant. Similarly, if this was Interest Only, we would need to have an awareness of the repayment vehicle (e.g. downsizing, etc) should one of the borrowers die. We would always take a view on the individual circumstances, with decisions based on all information. So, for example, if there was a private pension in place that provided widower's pension, this would be included in any separate affordability calculation checks we carry out.
How would you view an applicant in their 70s who derived all their income from property, e.g. rental income?
We would consider this applicant as retired, due to their age. However, we would include any property/rental income for affordability and would use this for the full term of the mortgage, assuming the income was expected to continue for that length of time.
What proof can be provided to support projected income?
For state pensions, projections are provided as part of the gov.uk website.
For private pensions, most pension companies provide annual statements, showing expected projections and we would use these.