Skip to content
ADVERTISEMENT
Later Life Lending

April Mortgages expands options for over-50 borrowers

April can consider income from employment, bonuses, overtime and commission, as well as State and private pensions, SIPPs and pension drawdown.

3 min read
Share
April Mortgages expands options for over-50 borrowers
ADVERTISEMENT

April Mortgages has expanded the options available to intermediaries supporting borrowers aged over 50, with criteria covering a wider range of income sources, repayment structures and family support.

The lender’s residential range includes capital and interest mortgages alongside Interest Only+, Part & Part and its joint borrower sole proprietor product, JBSP+.

April can consider income from employment, bonuses, overtime and commission, as well as State and private pensions, SIPPs and pension drawdown. Investment and rental income can also be accepted into retirement.

There is no maximum age at the end of the mortgage term for a sole applicant, while joint applications can run to age 80. Terms of up to 40 years are available, subject to the product, affordability and wider criteria.

ADVERTISEMENT

Up to four applicants can be included on standard residential and JBSP+ applications. Under JBSP+, this can include up to three supporters whose incomes are used in the affordability assessment while ownership remains with one borrower.

ADVERTISEMENT

Support can also work in either direction, with adult children, partners or other family members able to support an older borrower. Supporters can live separately and do not need to be named on the property deeds.

April’s Interest Only+ product is available where the eldest applicant is aged 50 or over, with a minimum application income of £24,000 and no minimum equity amount, subject to a maximum 60% LTV. Part & Part is available up to 75% LTV.

The maximum application age is 75, while the sale of the property can be used as the repayment vehicle. April can also consider up to 4% of a pension pot as annual income.

ADVERTISEMENT

Depending on the product, borrowers can select five, ten or 15-year fixed rates, make unlimited overpayments and move home or repay using their own funds without early repayment charges.

For remortgage customers aged over 50, April charges no application or completion fee and provides a free first valuation on properties worth up to £1m.

ADVERTISEMENT

James Pagan, director of product, portfolio and operations at April Mortgages, said: “Being over 50 tells an advisor very little about a client’s financial position or what they need from a mortgage.

ADVERTISEMENT

“Some people are still earning through employment or self-employment, others are combining income from several sources, and family support may be moving in either direction.

“What matters is whether the mortgage is affordable, sustainable and appropriate for the client’s plans, now and for the foreseeable future.

“That means recognising how people earn, giving them different ways to structure repayment and considering the support available around them.

“For some clients, the right answer will remain a Capital & Interest mortgage. For others, Interest Only+, Part & Part or JBSP+ could provide another route to consider.

ADVERTISEMENT

“Just as importantly, clients should not have to choose between longer-term payment certainty and the freedom to adapt.

“Flexibility after completion is central to our approach, giving suitable 50+ clients more options if their circumstances or plans change.

“That gives advisors a stronger starting point for 50+ cases and more ways to keep suitable clients within the mainstream mortgage market. From day one, the plus comes as standard.”

April Mortgages is available exclusively through intermediaries.

Related

ADVERTISEMENT