A SPECIALIST RESIDENTIAL MORTGAGE FOR THE OVER 55s BY SHAWBROOK BANK
01 Welcome to Shawbrook Bank 03 What is the 55 Plus Interest-Only Mortgage? 04 Why could the Shawbrook 55 Plus Interest-Only Mortgage be a good option for me? 07 Are you eligible? 09 Things you need to know 10 What is the process? 12 Get in touch
WELCOME TO SHAWBROOK BANK SPECIALISTS IN GOOD SENSE We are Shawbrook; a British lending and savings bank. We take a fresh and modern approach to banking while holding onto traditional values that work. We combine human underwriting with the latest technology to give customers a straightforward, no-nonsense approach to banking. Our friendly Residential Mortgages team puts customers needs first. They are always looking at ways to improve the service and products offered, especially for those poorly served by traditional high street banks. We are pleased to have our dedication to service rewarded, winning numerous awards over the past 12 months. Shawbrook Bank can offer its customers a range of services including: Residential mortgages (including second charge mortgages) Commercial mortgages Savings accounts Loans Please visit www.shawbrook.co.uk for more information. 01
Help your children onto the property ladder
WHAT IS THE 55 PLUS INTEREST-ONLY MORTGAGE? Unfortunately, there are few options for the over 55s who are nearing the end of their interest-only mortgage with an outstanding balance to pay. Banks often see age as a barrier when providing additional finance to customers. This leaves many people approaching retirement age with limited options; with the most common being; selling the family home, or using hard earned savings to pay off the balance of their mortgage. With a Shawbrook 55 Plus Mortgage there is another way. Our interest-only first charge mortgage offers you peace of mind, allowing you to stay in your home for up to an additional 15 years and keep your savings in place for longer. The 55 Plus Interest-Only Mortgage is extremely flexible too, putting you firmly in control. You can make additional payments to your loan each month, either through lump sums or increasing your Direct Debit. This is great because with us, you only pay interest on the outstanding balance, so by overpaying you will also reduce the amount of interest that you pay. As well as making overpayments, you can pay your mortgage off in full at any time. All that we require is the payment of a discharge fee, which is 120 in England and Wales, and 180 in Scotland. As an added bonus, when applying for the 55 Plus Interest-Only Mortgage, you can also borrow additional funds to spend on almost anything. From landscaping your garden, to helping your children onto the property ladder, to taking that holiday of a lifetime, or consolidating your outgoings into one manageable monthly repayment (a maximum of 30,000 can be raised for debt consolidation. This must also be the first time that funds are being raised for this purpose). Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. If you do not make overpayments or repay your mortgage in full during the term of the mortgage, at the end of the term you will have to repay the balance in full. This may include selling your home. 03
WHY COULD THE SHAWBROOK 55 PLUS INTEREST-ONLY MORTGAGE BE A GOOD OPTION FOR ME? n Stay in your most cherished asset, your home, for up to an additional 15 years n Keep your savings and investments in place for longer n Raise additional funds n Fixed or variable rates available n Full flexibility to completely repay your mortgage in full at any time. A discharge fee of 120 in England and Wales and 180 in Scotland applies n Make additional overpayments to your mortgage at any time and reduce the balance as well as the interest you pay Discovering the right option for you The Shawbrook 55 Plus Interest-Only Mortgage may not be the right option for you. The only way to discover the best outcome for your circumstances is to speak with a mortgage adviser, especially before you make any financial decisions or enter into any financial agreements. You should also seek independent advice and discuss your plans with anyone affected by such a decision.
Stay in your home for longer and keep your savings in place 05
We combine human underwriting and the latest technology to give customers a straightforward, no-nonsense approach to banking
ARE YOU ELIGIBLE? To qualify for a Shawbrook 55 Plus Interest-Only Mortgage you must meet the following requirements The main income earner must be aged between 55-75 years old at the inception of the mortgage The minimum value of your property at the inception of the mortgage must be 185,000 The minimum equity in the property is 125,000 ( 250,000 in London and the South East) The main income earner must have a minimum income of 16,500 per annum You must be a resident of ENGLAND, WALES OR MAINLAND SCOTLAND You must not be over 85 YEARS OLD at the end of the mortgage term 07
We believe in being transparent
THINGS YOU NEED TO KNOW Your home is at risk if you do not keep up with repayments If you do not keep up with the interest payments on your mortgage your home may be repossessed. If you find yourself in financial difficulty, contact us as soon as possible and let us see how we can help. Repaying your 55 Plus Interest-Only Mortgage at the end of the term As this is an interest-only mortgage, you are only paying off the interest, not the balance. This means that you as the borrower will need to make separate arrangements to repay the amount borrowed, which you will still owe at the end of the mortgage term. You will have to sell your property to repay the amount owed unless an alternative payment method is arranged and agreed. Potential costs n Your mortgage adviser may charge a fee for providing you with advice n There is a lender fee. This covers the administration costs involved with setting up the mortgage and includes the legal fees that Shawbrook Bank will incur. If you do not proceed with the mortgage, you will not be charged n Banking disbursement fee. Where applicable, this covers the cost of sending funds directly to your current mortgage lender to release their charge on your property. This fee also covers the cost of sending you any additional funds raised on top of the amount being borrowed to clear your existing mortgage (where applicable). Where the additional funds are being raised for consolidation, this fee covers the costs Shawbrook incurs for disbursing funds to your creditors directly. This fee can be paid on application or added to the mortgage n A valuation fee is payable once your application has been received and assessed by our Underwriting team and will cover the cost of an independent mortgage valuation on your property n Your solicitor or Licensed Conveyancer will charge you a fee for providing you with independent legal advice 09
WHAT IS THE PROCESS? 1 2 3 4 5 6 7 Having assessed your circumstances, your mortgage adviser will recommend the most appropriate product for you. They will then summarise all the key facts, including the costs, in a document called an ESIS (European Standard Information Sheet) and they will also issue a suitability letter outlining why this option is suitable for your circumstances. If you are happy to proceed with the recommendation made, and you have chosen our 55 Plus Interest-Only Mortgage, you will need to complete our application pack. This will be sent to you by the mortgage adviser. Once the application is received by the adviser they will assess the paper work against the information collated during the fact find process and your suitability for the mortgage. They will then request any third party documents such as a redemption balance from your existing lender and, subject to no changes, they will submit to us. Once we have received the documents, and subject to an initial underwriting assessment, a Shawbrook underwriter will call you to take payment for the valuation fee and the valuation will be instructed. Upon receipt of the valuation, and subject to everything being satisfactory, we will call you to confirm that you understand the terms and conditions. Once you have confirmed this, we will issue a Binding Mortgage Offer confirming the amount we will lend to you, which will be sent to you by your mortgage adviser. Once in receipt of the offer documents you will be required to obtain independent legal advice from a solicitor or Licensed Conveyancer. They must witness you sign the Mortgage Deed or Standard Security and will confirm in a certificate addressed to us that they have explained to you the nature of the documents and their practical implications. Whilst you are free to use a solicitor or Licensed Conveyancer of your own choice, Ashfords LLP and Goldsmith Williams are familiar with this mortgage and are able to provide this advice to you for an agreed fee. Finally, we will call you to verify the name of the solicitor or Licensed Conveyancer who provided you with the advice. Once all this has been completed we will release the funds and send a welcome letter to confirm all your contractual details. The letter will provide details of the team you should contact should you wish to inform us of any changes to your circumstances, set up regular overpayments or change your payment date.
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GET IN TOUCH Shawbrook isn t just any bank. We are specialists in good sense which means that we put our customers needs first and take a personal approach to reviewing every application. If you have any questions at all regarding the 55 Plus Interest-Only Mortgage, please do not hesitate to contact our friendly team. Please note that Shawbrook does not offer advice. You should seek independent financial advice before making any investment decisions. Contact Tel: 0330 123 4526 Email: fiftyfiveplus@shawbrook.co.uk Visit: www.shawbrook.co.uk We look forward to hearing from you.
Registered office: Shawbrook Bank Limited, Lutea House, Warley Hill Business Park, The Drive, Great Warley, Brentwood, Essex, CM13 3BE. Registered in England Company Number 388466. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.