Interest only borrowing is not permitted if the term of the mortgage goes beyond your client(s) stated retirement age or their 71st birthday, whichever is sooner. 

The term can exceed their 71st birthday however their income will not be used for affordability. The term can not go beyond the applicants stated retirement age or their 71st birthday, whichever is sooner, where income is required. 

Sole applications – Interest Only lending permitted to already retired customers where max age at end of term does not exceed their 71st birthday.


Joint applications – Interest Only lending permitted where any applicant is already retired, however no retirement income can be used in the affordability assessment. Please note the percentage of the mortgage term occurring after age 70 must be less than 25% of the overall mortgage term as per standard term into retirement criteria.