Lending In and Into Retirement is permitted.

LTV’s for Into Retirement lending are capped at 80%, and for In Retirement they are capped at 70%

• When assessing affordability on the expected, future retirement income, the review should reflect awareness, where feasible, of any changes that may impact the applicant’s lifestyle and/or future financial position
• Evidencing of pension income – whether state and/or private
• Any potential to draw-down/lump sum payments on initial funds is highlighted, ensuring this is factored into calculations and it is the ongoing monthly pension amounts that are included.  Where this is not yet known, lowest monthly income is assessed, to ensure ‘worst case scenario’ can be covered
• Pensions payments expected should cover the term of the mortgage required, pension amounts versus expected longevity are reviewed
• When assessing state pension, net amount is used
• SIPP pensions will be carefully appraised, ensuring fund value is reviewed