4.12% MER Fixed Equity Release Lifetime Mortgage And Mortgages For Over 60s

  • Get a free no obligation home valuation
  • Loan to value up to 65%
  • No lender, broker or adviser fees
  • 4.12% fixed rate for products with and without monthly interest payments
  • Ideal to pay off an existing mortgage
  • No upper age limit
  • No end date or fixed term
  • Commonly used for gifting and tax planning
  • For plans with monthly payments, there are penalty-free payment holidays
  • Fee-free further advances – subject to new home valuation
benefits of retirement finance

What banks, building societies and specialist lenders currently offer RIO mortgages and lifetime mortgages?

A top-rated lender in 2024 is Sun Life equity release, followed by Saga, RBS, Pure Retirement, Nationwide, Lloyds Bank and HSBC.

Is Santander equity release one of the best lifetime mortgage offerings?

Because Santander equity release has a free home valuation, no fees and a low interest rate it is a desirable offer for retired people over 60. If you can afford a monthly payment, you could also consider a Santander over 60 mortgage.

The other benefit of a Santander lifetime mortgage is there are no early repayment penalties, so if you want to sell your home and move to another house, you can, subject to a new valuation and loan-to-value requirements.

Even if you don’t sign up for Santander mortgages for over 60s with a Santander lifetime mortgage, you can make voluntary payments to prevent the interest from being added to the loan.

Albion finance features

Does a Santander lifetime mortgage require a home valuation?

Yes, Santander Bank requires a regulated 3rd party valuation of your home before you are given a formal mortgage offer. The benefit of Santander is their valuers do not penalise the valuations of flats and other leasehold properties.

Santander does not currently use automated/desktop valuations, which were popular in the 2000’s.

What results does the Santander equity release calculator provide?

When you use the Santander equity release calculator, you put in your personal details and the details of your home, and it will tell you the following:

  • The maximum amount you can borrow
  • The interest rate, which is currently 4.12% fixed for life
  • The monthly interest payment if you are looking for a RIO mortgage
  • The predicted remaining equity in your home at certain key points, assuming your home does not appreciate
  • A rough guide of the interest payments added onto your loan, assuming you want equity release

What are the Santander lifetime mortgage rates in 2024?

The Santander lifetime mortgage has a rate of 4.12% fixed for life. The product has no upper age limit, no fixed term or end date.

What is the interest rate on Santander retirement interest only mortgages?

The interest rate on Santander retirement interest only mortgages is 4.12% MER fixed for life. The rate will remain fixed even if you move home to another house, but the loan to value of the product will still have to stack up with the current requirements.

Why is there such a high demand for Santander release equity?

One of the key drivers in later life lending in 2024 is gifting to sons, daughters and other family members so they can get a deposit to get a house.

Lenders don’t like giving reasonable rates on high loan-to-value mortgage products. To get a good deal on a standard mortgage you need a 30% deposit. Removing equity from an unencumbered home allows this deposit to be put down for a home for a family member.

What are the other alternative lenders to Santander mortgages for over 60s?

If you don’t pass the affordability for a Santander mortgage for the over 60s you could consider an Aviva equity release product, a Just product, Liverpool Victoria, Key or Hodge.

How are standard mortgages different from a Santander retirement interest only mortgage

With a standard mortgage, you are expected to support the interest and gradually pay down the principal of the loan. With Santander retirement interest only mortgages you have to just support the interest on the loan and not pay down the principal.

These are special mortgages for retired people and pensioners, where the loan is repaid by the sale of the home.

What is the difference between Santander Lifetime mortgages and Santander mortgages for over 70s

With lifetime mortgages, there are no compulsory monthly payments, and with Santander mortgages for over 70s the monthly interest payments are mandatory. If you don’t make your payments, eventually, the bank will instruct solicitors to take your home and sell it to repay the mortgage.

How does Santander over 60 mortgage affordability work?

With Santander over 60 mortgages, the bank needs to be sure that you have sufficient income to support your monthly interest payment and live comfortably. The income you show should be for the rest of your life.

How popular is equity release Santander in 2024?

You can buy the data on how many mortgages are maturing in 2024. Santander knows that many of these people in retirement will not be able to get a remortgage because they don’t have the income for a retirement remortgage.

This is where equity release Santander comes in, as you don’t need to make a monthly payment with this product.

Because Santander’s equity release has low rates and no fees, it is predicted that the equity release Santander is going to be very popular in 2024 and into 2025, too.

What fees are involved in a Santander retirement mortgage in 2024?

With Santander retirement mortgages, there is a free home valuation with no obligation, there are no lender fees, product fees, adviser fees or broker fees. The application process can be done in person or using your computer online.

The only fee you will have to pay, which is not for Santander, is your solicitor’s fee, which may be around £600. But you can choose your own legal representation.

Do Santander lifetime mortgages have early repayment charges?

No, Santander lifetime mortgages have no early repayment charges and allow voluntary payments. If you want to sell your home, you can repay your over 60 mortgage at any time.

Is there an age limit for Santander retirement mortgages?

There is currently no upper age limit on Santander retirement mortgages, but there is the requirement that all owners of the property at the time of application are over 55 years old. If you are over 50 and under 55 you should try to determine if you can qualify for a product that requires income.

Santander UK plc.

Registered Office: 2 Triton Square, Regent’s Place, London, NW1 3AN, United Kingdom.

Registered Number 2294747. Registered in England and Wales.

Santander is Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

The Santander Financial Services Register number is 106054. You can check this on the Financial Services Register by visiting the FCA’s website