The Marsden Building Society shares a mutual status with its members for whom it has been providing savings & mortgages for over 155 years. All six branches are based in the north-west and aim to follow the Marsden’s philosophy of providing a personal and conversational approach to providing its financial services.
The Marsden provides a range of mortgage products, with a specialist ‘lending to retired’ mortgage products. Marsden do not consider lending to retirees an issue as long as they are in receipt of pension income, allowing elderly homeowners availability to a pensioner mortgage on their home.
The Marsden Retirement Mortgage is designed specifically for homeowners who are retired and requiring access to the equity in their property to enable them enhance their lifestyle in retirement. Marsden have a sensible approach to lending in retirement by using an income multiplier and affordability calculator as their measure to borrowing limits.
Eligible income for homeowners that is acceptable to Marsden Building Society is only pension income which must be evidenced, along with investment or rental income if this can be evidenced with annual statements or SA302’s.
Affordability is measured using an income multiplier of 4.5x single or joint incomes. This is then stress tested at 8.5% as an affordability measure by Marsden’s underwriters. The minimum acceptable income level is £20,000 which is based on either single or joint applications.
Marsden’s minimum property valuation on their retirement mortgage is £150,000 and the property must be the homeowner’s main residence and should be situated within England and Wales only.
Marsden’s Retirement Mortgage is available on both a single and joint life basis with a minimum age of youngest homeowner being 55 and the maximum age of the eldest at the end of the term must be 85.
The minimum loan on this pensioner retirement mortgage is £30,000 with a maximum of upto £500,000 upon referral.
The Marsden Retirement Mortgage scheme provides an initial tax-free lump sum cash release for immediate use,with the ability to make monthly repayments of only interest, or capital & interest, back the Marsden as part of this retirement mortgages T&C’s.
The Marsden mortgage in retirement has access to various discounted rate loans within Marsden’s product range. The rate quoted above applies to both capital & interest, and interest only mortgages and discounted until 30.04.2019. Further options exist for 3 year discount of 2.69% and 2 year fixed rate of 2.89%.
The maximum loan-to-value depends on whether interest only or a repayment basis is selected. Any interest only mortgage has a maximum loan-to-value (LTV) lending limit of 60% of the property valuation, whilst for repayment mortgages the minimum LTV is now also the same at 60%.
Marsden aren’t members of the Equity Release Council and consequently their plans don’t have the code of conduct applicable like other equity release schemes such as the no negative equity guarantee.
The Marsden will require proof of all forms of income. As this is an interest only lifetime mortgage, then Marsden will also require evidence of affordability of the monthly payments selected in retirement. This will be pension income &/or investment income for each applicant. Marsden will accept applications which are based on retirees house purchasing, remortgage business and on unencumbered properties.
All ‘lending to the retired’ mortgage products come with a free valuation upto £500,000 and a fee assisted remortgage package including free legals.
Marsden’s focus is on retirement mortgages that can help a homeowner live the rest of their life more comfortably. Homeowners throughout the UK can access the loan products from Marsden as long as the home meets property valuation criteria. Independent Lifetime Mortgage advisers can help with further information on specific retirement mortgages from Marsden Building Society.