Our latest research sheds light on the prevalent financial anxieties among over-55s regarding mortgage affordability and accessibility. With over a quarter (28%) expressing concerns about affording their mortgage if it transitions to their lender’s Standard Variable Rate (SVR), and an additional 36% anticipating difficulties in managing repayments, addressing these worries is paramount. 

Many older borrowers are contemplating selling or downsizing their homes to mitigate financial challenges, with 37% considering such options and nearly half (48%) in London exploring relocation or downsizing due to soaring property prices. 

Traditionally lenders’ age limit restrictions pose significant challenges for older borrowers seeking new mortgages or remortgages, as highlighted by concerns from nearly two-thirds (60%) of respondents regarding the lack of tailored financial products. Thirty-six percent feel excluded from the market due to age restrictions, emphasising the need for more inclusive solutions. 

Our Retirement Interest Only (RIO) mortgage for those aged over 50 aims to address these concerns by offering flexibility and optionality. As of 4th February 2024, it stands as a market leading long-term fixed-rate RIO product, starting at 5.84% (up to a maximum 60% LTV). This product provides the security of fixed payments, ensuring homeowners can enjoy retirement with peace of mind. 

Arjan Verbeek, CEO and co-founder of Perenna, emphasised the importance of inclusivity in the mortgage market, particularly for older demographics. He stated, “The current UK mortgage market is ageist. A whole demographic is being unfairly excluded and left behind, because of their age. We think that is wrong.” 

The lack of options for people over 55, compounded by fears of being trapped in their provider’s SVR, is a significant concern. Verbeek continued, “Retirees should have solutions available to live the lives they desire and deserve. Our new long-term fixed-rate retirement interest-only mortgage is a step towards financial freedom for older homeowners.” 

Check out our latest product range for current rates.  

Notes 

• All data, unless otherwise specified, is taken from 1,003 respondents conducted by Censuswide in January 2024 – all respondents were homeowners aged 55+ and either heading into retirement or already retired. 
• Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles. 
• “Market leading” – determined by lowest fixed for life retirement interest only product on the market as at 04 February 2024 https://www.equityreleasesupermarket.com/compare-deals/retirement-interest-only 
• End of term age limit – this refers to the age by which the borrower has repaid their mortgage. 

Correct at time of publishing.

Dedicated phone lines and webchat services to provide smoother and more immediate help for our intermediary partners are now available. 

Key updates: 

• Phonelines: Our dedicated support phone lines are available from 9am to 5pm, Monday to Friday, aligning with your essential working hours. 
• Webchat: We’ve introduced webchat services during the same hours, offering a quick and convenient alternative for assistance.
  

Our Intermediary Support Team is here to assist you. 

Graham Laverty, Intermediary Support Manager, shared, “We’re excited to bring you new support options. Our aim is to deliver a first-class experience for our intermediaries, providing support through the onboarding journey and with any new business enquiries”. 

Perenna is dedicated to providing exceptional support and services to our intermediary partners. For enquiries or more information, contact us at 0333 344 1013 or via webchat during office hours.

Correct at time of publishing.

Great news! Our range got even better.

• Rate reductions of up to 60bps
• Introduction of interest-only options on all products up to 75% LTV
• Mortgages available with a 15-year term, allowing customers to fix their term for 15-40 years
• Launch of retirement interest only products
• Introduction of new 40% LTV band

Retirement Interest Only

RIO products, starting from only 5.84% up to 60% LTV, with £1,999 product fee.

Our RIO products are available to borrowers over the age of 50, up to 60% LTV. The rate is fixed for life. No SVR, no stress testing and no worrying about rates rising in the future.

RIO range comes with our standard 5-year ERC – giving your customer certainty that their monthly payments will never go up, whilst providing flexibility to change that they can change deals, should rates go down in the future.

We know affordability is complicated when it comes to RIO products, so we’ve built a new dedicated RIO calculator.  See what your customers can borrow today.

For joint applications, we’ll ask you to provide details of a plausible strategy for ensuring the loan can continue to be paid in the event of the death of either borrower. This could be transferable income, background assets, or even a plan to sell the property and downsize using equity. As long the plan is feasible and can be evidenced, we’ll consider it.

For purchase applications, we’ll ask your clients to seek independent legal advice. We want to make sure they fully understand the terms of the mortgage before committing. For remortgage cases we’ve partnered with Forever Legal, who will carry out the standard legal work on our behalf and visit the customer face to face to go through the documentation and make sure everyone is happy before completion.

For more information, take a look at our full lending criteria and later life lending guide.

Interest Only

Perenna mortgages are now available on an Interest Only basis up to 75% LTV.

The loan must be affordable on our standard calculator, and there must be a repayment strategy in place to cover the loan amount. This could be savings, investments, property equity, or a pension lump sum.

We can also accept sale of the security property as the repayment vehicle, as long as there is at least £150k of equity left in the property (£300k required in London and the southeast). If using sale of property as the repayment vehicle we can’t lend into retirement. However, your customer could consider a Perenna RIO mortgage instead.

For more information, take a look at our full lending criteria.

Introducing 15–20-year fixed rates

15 – 20-year fixed rates available from just 4.99% up to 40% LTV, with £1,999 product fee.

This means you can now get a Perenna mortgage, fixed for between 15-40 years, with only a 5 year ERC.

For more information, check out our full product range

N.B rates and content correct at time of publication