Mortgages in later life are changing, and brokers need to stay ahead. 

In our first webinar of the year, Tom Blackler and Deb Reeves shared key insights on lending into retirement. They showed brokers how to offer flexible mortgage solutions that better support their clients’ needs. 

What makes Perenna different? 

At Perenna, age is but a number. That is why we have removed age limits on some of our products, both at application and at the end of the mortgage term. 

Our goal? To help homeowners make the most of their retirement, with a mortgage that truly works for them. 

Key takeaways from the webinar 

Business Development Manager, Tom, highlighted key Perenna policies that are particularly beneficial for clients over 55: 

• Fixed for term mortgages – All Perenna mortgage products come with a fixed rate for the entire term. This means clients can count on a stable interest rate. And more importantly, a predictable monthly payment throughout the mortgage term. 

• Flexibility – While our mortgages are fixed for the full term, they come with a 5-year Early Repayment Charge. This means that after five years, clients can pay off their mortgage, remortgage with another lender, or stay on the same rate. If Perenna offers a lower rate, they can choose to switch through a product transfer. 

• Income multiples – Unlike other lenders, we base stress tests on the customer’s pay rate instead of the Standard Variable Rate (SVR). This allows us to lend up to 6 times income – up to 95% LTV, or 70% LTV for those 65+ at application and 85+ at term end. 

National Account Manager, Deb, explained how Perenna considers retirement income for customers: 

• Pensions & annuities – State, workplace, and private pensions are all accepted. 

• Drawdowns & SIPPs –We can use 4% of the total pension value as annual income, provided the client is not withdrawing more than that. 

• Rental income – This is considered if it is well-documented, sustainable, and factors in property costs. 

• Earned income – This can be used up to age 70. For clients who are more than 10 years from retirement and paying into a pension, earned income can still be considered, so long as less than half of the mortgage term remains before their retirement age (or age 70). 

Deb shared an example of a 59-year-old client, to show how mortgage terms are based on the expected retirement age. There may be some lenders that assume retirement at 70, but Perenna offers more choices, for self-employed and for office workers. 

For borrowers lending into retirement – either within 10 years of retirement or where at least half of the loan term falls during retirement – the Loan-to-Value (LTV) is typically capped at 70% to support long-term affordability. 

January’s webinar also covered Perenna’s Interest-Only and Retirement Interest-Only (RIO) mortgages – both built for long-term stability. 

Interest-Only mortgage criteria 

• Up to 25-year term 

• Maximum 75% LTV 

• No maximum age limit, as long as there is an alternative repayment plan. 

Retirement Interest-Only (RIO) mortgage criteria 

• Minimum age 50 

• Maximum 60% LTV 

• Affordability based on interest-only payments 

• Repayment triggered by a life event (e.g., death or long-term care) 

• Independent legal advice required for applicants aged 80+ at application 

Not sure which is best for your client? You can compare our product offering here. 

Q&A highlights  

Brokers raised key questions on affordability, joint applications, and rental income. A key topic was how we assess joint applications when one borrower is retired, and the other is still working. In these cases, we consider both incomes and overall affordability.  

Perenna’s Lending into Retirement policy gives brokers more options to help clients get long-term mortgage solutions. 

Do you want to learn more? Take a look at our intermediary website for full criteria details. 

Join our next webinar! 

Do not forget to join our next webinar on Thursday, 13th February. We will be talking about Perenna’s unique selling points. Register here and keep an eye on our socials for details! 

Correct at time of publishing. 

Often Equity Release is provided as the only solution for older borrowers. But today, I want to explore the full range of options available. 

My drive and passion around this subject are all about choice and advice. The freedom to make choices and access professional and considered advice. 

From a personal perspective, I look at my own parents and want them to spend what is theirs, enjoy retirement to the full and be comfortable in the choices they make! 

As for the ‘alternative,’ this is not just about an ‘alternative’ for now, but about a well-thought-out plan. It might mean that Equity Release is the ‘right fit’ or the best solution in several years’ time, but for today, it is about exploring all options. 

As a broker, I encourage you to consider what later life lending means to you. Do you see yourself as someone who handles it? Many brokers tell me they do not specialise in later life lending, but why not? If you have advised a client to take out a mortgage beyond retirement age, then in my view, you do – and you should not shy away from it. 

Later life lending could be a great option for many people in retirement. The freedom that the right type of borrowing can bring in later years may be life-changing for those who embrace it. Life is for living, and I encourage you to help more clients do just that! 

While equity release is absolutely one option, I want to focus on those customers who can afford monthly payments now, especially with long-term fixed rates. 

Long-term fixed rates = stability for older borrowers 

When it comes to securing a mortgage or a loan in later life, one of the big concerns for borrowers is interest rate volatility. Rising rates can lead to higher monthly payments, which is a concern for those on fixed incomes or pensions.  

Protect your clients from rate changes and give them peace of mind.  

With a Perenna mortgage, there are no early repayment charges after five years. This means your clients can explore options like Equity Release or others, without worrying about penalties. 

Let’s look at those ‘alternatives’.  

A traditional ‘term’ mortgage

Perenna has a genuine no maximum age policy. If a traditional mortgage is affordable, it may be the right option for some clients. With a long-term fixed rate mortgage, clients benefit from payment security while repaying capital, should that be their preference. This ties back to the point of financial freedom and choice in the here and now. The mortgage could be inherited along with the property when the time comes. The intergenerational aspect that these supports should be explored – after all, family homes are more than just bricks and mortar! Of course, the mortgage can still be paid off with the proceeds of sale if that is the right option for the family or those inheriting the property. 

Retirement interest only (RIO)

This option suits those who want to keep payments lower but prefer to pay monthly interest rather than allowing it to roll up. This helps preserve the home’s equity. At Perenna, we’ve found that brokers have welcomed the option to use ‘downsizing’ in the event of the first death, which avoids the death stress test applied by some lenders (subject to minimum equity and the ability to downsize). RIO mortgages open that halfway house between a traditional mortgage and Equity Release and should not be discounted as an option. It could great solution for the right clients. 

Please do not assume that older borrowers can’t be helped. In some cases, the days of paying off a mortgage at retirement with a pension lump sum are not feasible. More positively, the days of limited choices – where clients were forced to downsize or rent due to a lack of mortgage options – are gone! 

Whether clients are coming to the end of an interest-only mortgage term without a repayment plan, need funds for home improvements, want to help family members onto the property ladder, secure the dream holiday, or are planning long-term estate solutions, there is now a range of options. These choices support financial freedom at any age. 

This is sensible, responsible lending, supporting sensible, responsible mortgage advice. 

So next time you have a client that is looking at their options in later-life. Ask yourself, whether you’ve presented all of the options.  

See how Perenna can help today.  

Use Perenna’s affordability calculator 

Written by Perenna’s National Account Manager, Deborah Reeves 

Correct at time of publishing. 

Is Perenna new to you, or have you not used us for a while? 

Join our webinar on Thursday, 13th February, from 12 PM to 1 PM GMT. 

Graham Laverty, Intermediary Support Manager, and Janet Frame, Business Development Manager, will explain our range and lending criteria. 

This session is perfect for those new to Perenna or anyone needing a quick update! 

Date: Thursday, 13th February 

Time: 12:00 PM GMT 

Platform: Microsoft Teams 

Register here: https://events.teams.microsoft.com/event/f756e46f-4d99-46ce-a866-740e7c0d8875@961e4b01-2f89-42cf-b991-aa3f575c5152] 

We look forward to helping you and your clients!

Correct at time of publishing. 

As a broker, you may have seen more homeowners over 65 seeking mortgage advice. 

Did you know that 2 in 5¹ new mortgages now stretch beyond pension age? Understanding this growing group and their needs is key to helping your clients.

Over 50s² in the UK hold 78% of privately held housing wealth. 

Many in this age group are looking for ways for their equity wealth to help them to live their life in retirement, or to support their family to buy homes of their own. Changes in pensions and longer life expectancy mean people now have less money to spend compared to previous generations. 

Providing options here is crucial, but this group may find themselves frozen out by many lenders. Age limits at application or term end can cap loan sizes and shorten repayment terms, making payments harder to afford. This pushes people towards expensive specialist products, which can harm vulnerable customers if they don’t get the right advice. 

Perenna are proud to offer solutions to this group. We don’t apply maximum age limits, meaning we can offer longer mortgage terms. As long as we are using sustainable income into retirement, we can offer a long-term repayment mortgage on our standard product range and criteria. Our long– term fixed rates could be ideal for borrowers who are retired, as they remove the need to refinance every few years.  

Knowing their monthly payment will never change can give clients peace of mind. Importantly though our products come with a reducing 5-year ERC, to give flexibility should they ever need to change their deal. 

Our Retirement Interest Only (RIO) product could be great for those who prefer interest only. While some brokers might not deal with these cases often, our support teams are here to explain the options available for your clients and how we can help. 

At Perenna, we believe anyone who can afford a home should have the chance to own one – no matter their age. 

Do you talk to clients in or approaching retirement? Want to offer tailored mortgage solutions for those in later-life clients? Contact our support team or explore Perenna’s flexible products today. 

Written by Perenna’s Intermediary Support Manager, Graham Laverty.  

Correct at time of publishing. 

 ¹  Two in five mortgages set to run into retirement: LCP   – Mortgage Strategy 

 ² Savills UK, Housing wealth held by over 65s hits record high of over £2.6 trillion.

We are excited to announce that Perenna has won Best Remortgage Lender at the 2024 Personal Finance Awards! And we were also highly commended in the Best Fixed Rate Mortgage Provider category!  

These awards reflect the strong partnerships we have built with brokers and the trust consumers have placed in us. Thank you for your continued support. It helps us provide flexible mortgage solutions to homeowners. 

We are excited to keep working with brokers to create a nation of happy homeowners. Your role is crucial to our shared success, and we couldn’t do this without you. 

Thank you for being a key part of our journey! 

Correct at time of publishing. 

We really appreciate it when our broker partners take the time to share their experiences with us.  

Your views help us to know where we’re doing things right and help us to identify where we could improve.  

Celebrate with us as we share the positive experiences you’ve had with Perenna. Our #FridayFeedback series on LinkedIn showcases the feedback we’ve received. Here’s a snapshot of what our broker partners have said: 

• David at L&C liked our clear process and great service. He was impressed by how we helped a distressed client when no one else could, noting that our quick and personal support made a big difference. Read more. 

• Rob at Sunland appreciated being listed in our ‘Find a Broker’ directory, which brought him a new referral. He mentioned that this feature helps small businesses get noticed and find new opportunities. Read more. 

• Richard at Hawkstone described the experience of submitting his first case with Perenna as the best he’s had in 20 years. He praised our team, policies, and quick service, noting that the whole process was outstanding. Read more. 

• Robert at New Homes Mortgage Helpline appreciated our Deposit Unlock new build proposition, which allowed first-time buyers to secure a new home with just a 2.5% deposit. He valued the comprehensive support we provided throughout the application process. Read more. 

• Corey at L&C was impressed with our modern, user-friendly system. He also praised our team’s prompt and helpful support, which greatly enhanced his experience. Read more. 

• Aaron at Mortgage Advice Hub praised our team for being efficient and responsive. He found our platform to be the fastest and easiest to use, which made for a great experience. Read more. 

• Dan at UK Moneyman enjoyed working with Perenna and valued our top-notch support, fast processing times, and creative solutions for older borrowers. Read more. 

• Hubert at Cooper Associates was impressed by our service and quick underwriting, highlighting our strong commitment to supporting brokers. Read more. 

We appreciate the positive feedback from our broker partners. Your insights help us grow and get better.

Stay connected with us on LinkedIn for more stories from our #FridayFeedback series. We’d also love to hear your experiences—email us at broker@perenna.com.

Correct at time of publishing.

For many borrowers, the amount they can borrow is a key priority. But do they realise that the product they choose can impact the amount they can borrow?  

Perenna’s fixed for life products don’t have an SVR or ‘revert’ rate that most short-term products have (and therefore no SVR based stress test)! This means we can unlock higher borrowing amounts for those who need it, whilst giving the flexibility of a short ERC period of 5 years.  

If maximising borrowing power is important to your client, we have a new tool that can help bring this to life. You can now easily see how a Perenna product compares with short-term fixed rate products. Why not give it a try today?

Correct at time of publishing.

Discover the latest from Perenna! Over 100 brokers recently joined our webinar led by Graham, Intermediary Support Manager, and Tim, National Account Manager. They highlighted essential lending insights that you won’t want to miss. 

Graham kicked off the session by exploring our long-term fixed rate proposition with short ERCs, and how this is a great addition to the UK market offering stability with flexibility.   

Tim explained in depth our recent enhancements to lending policy for non-UK nationals, as well as some of our new build products helping more first-time buyers onto the housing ladder.  

They both used case studies to bring the policy to life, with examples ranging from first time buyers, through to borrowers remortgaging, or lending into retirement – covering the full range of customers Perenna aims to serve. 

Perenna provide fixed-rate mortgages for the long term, which keep payments stable throughout the loan period with decreasing Early Repayment Charges (ERCs) over the first 5 years. 

Perenna shows commitment to inclusivity for older borrowers by offering mortgage products designed with no maximum age limits.

The webinar provided brokers with an overview of Perenna’s range, which includes high LTV options, support for self-employed applicants, and updated policies for foreign nationals and new build properties. For more information about Perenna’s lending criteria, please visit our website. 

During the Q&A session, Tim and Graham addressed numerous broker questions, highlighting strong interest in Perenna’s offerings and policies. Topics ranged from offer extensions to non-standard properties and specific case scenarios.  

Graham ended by emphasising how important the relationship between lender and intermediary is to Perenna, and how working together can help us to deliver better customer outcomes.  

Don’t miss our next webinar on Thursday, July 25th! Learn how Perenna’s products cater to clients in later life stages. Register now to secure your spot!

Correct at time of publishing.
 

At Perenna, we believe that a stable and predictable mortgage is the key to a worry-free life. No longer does your client need to build their life around their mortgage. 

With our long-term fixed rate mortgages, they can secure their finances and focus on what truly matters – living their life. 

The mortgage revolution to set your clients free 

Imagine your clients knowing exactly what they’ll pay each month, without the fear of rising rates. Our long-term fixed rate mortgage offers this certainty, so your clients can plan those big life moments with confidence. 

Forget the mortgage and focus on building a life 

Our fixed rate mortgage provides the stability needed to concentrate on what’s important. With Perenna, your clients can defend their right to build a life without the stress of fluctuating mortgage payments. 

Age is but a number 

We believe in options for everyone, including those in later life. Unlike many other lenders, we don’t have a maximum age limit, so your clients can make the most of their retirement with a mortgage that works for them. 

See how much they can borrow 

Use our mortgage calculator to see how much they could borrow – it only takes a few minutes. 

Want to show your clients more? 

Share our brand video with them, so they can see how we’re creating a nation of happy homeowners, one mortgage at a time. 

Correct at time of publishing.

Retirees deserve the freedom to live the lives they’ve worked hard for. That’s why we call it The Mortgage Revolution! 

Freedom and choice in retirement 

With sensible advice, a mortgage in retirement can enhance, not hinder, the golden years. It’s about what suits their needs. Paying off a mortgage by retirement has been the norm and may be the best solution for a lot of clients.  But what if a mortgage could provide the freedom other clients need in retirement? 

Retirement should be a time for relaxing and living away from the pressures of work. Financial worries, especially around your home, can ruin any planned relaxation. And that’s why, at Perenna, we believe in providing options.  

The need for responsible later life lending 

Headlines from research conducted on behalf of Perenna highlight the need for tailored mortgage products for those over 55*: 

• 60% of over 55s report a lack of suitable mortgage options. 
• 36% find their mortgage restrictive due to age. 
• 64% worry about financial strain from rising payments. 

Older borrowers are often excluded from standard mortgage products due to maximum age limits or the exclusion of pension income.  

*Source – 1,003 survey respondents conducted by Censuswide in January 2024. All respondents were homeowners aged 55+.   

How could a Perenna mortgage help?  

Perenna aims to provide an alternative option.  We’ve pulled together some scenarios below to show how a Perenna mortgage could help your clients in later life.  

Consider these common situations: 

Lifelong homeowners
They’ve lived in their home for years, brought up children there, and now their grandchildren have their own rooms. The memories in these four walls are priceless. However, they face high SVR rates with no repayment plan and are being pushed to repay by their lender. 

Post-separation
After a separation later in life, as a single applicant, they want to release some equity from the property and stay in the location they love, but end-of-term age limits are a real barrier. 

Newly retired
With no mortgage and the world at their feet, they want to live life, travel, make home improvements, or help their children onto the property ladder, but savings are low. They need that lump sum without being ready to downsize just yet. 

Dream retirement home
That perfect new build home near the family is on the market, but the area is more expensive than where they live now. Selling their home doesn’t quite give them enough to make the move, so they want to explore finance options as this opportunity might not come up again. 

Perenna’s long-term fixed-rate lending could be a great option for all the above situations. 

Perenna’s solution 

For some of your clients, lending into retirement is not required, and aiming to pay off their mortgage before they leave employment is the best solution for them.  However, for others, lending into retirement can be a good solution to assist individuals in securing a home or maintaining their current residence, provided it is done responsibly and appropriately. 

We know that a short-term fixed rate can leave the borrower vulnerable to payment shocks, especially on a fixed pension income. With Perenna, the risk of payments becoming unaffordable is removed, and payment certainty is gained.  

We don’t want later life borrowers to have to make choices about holidays they can’t go on or hobbies they have to give up when their rate expires. Instead, they can have the best of both worlds and the ability to take advantage if rates go down. 

With a range of options, including no maximum age on a repayment mortgage or a retirement interest-only mortgage, all with only a 5-year ERC, Perenna can help put the financial freedom back in the hands of the borrower. 

So next time you have a client looking to borrow in later life, make sure you consider all of the options available, and see whether a Perenna mortgage could be the perfect match.

Correct at time of publishing.