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POST OFFICE RETIREMENT LINK MORTGAGE™

Free up funds from your home to help you expand your horizons

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What is Post Office Retirement Link™?

  • These mortgages are designed to help you borrow into retirement. Like a traditional mortgage, you can choose an interest only or a capital repayment plan. You will make monthly payments and need to repay the loan at the end of the agreed term.
  • We will lend up to the age of 90 if you select the repayment option and up to the age of 80 for interest only.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE


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How does it work?

Standard account

How much you can borrow

Please read in conjunction with the important information below.

We take a look at the value of your home along with your pension income to work out how much you could borrow. Minimum income requirements apply. Max loan size is £500,000.

Control account

Plan that suits you

Together, we decide which repayment plan would suit you based on your circumstances. There are two options:

Repayment, or Interest only.

Wallet

Paying it all off

If you choose the repayment option you must repay by the age of 90. If you choose the interest only option you must repay by the age of 80.

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Differences between repayment plans

We will assess your affordability to ensure we put you in a plan that works for you

Interest only

  • Ideal for those who ultimately want to downsize and repay the loan from the sale proceeds before the age of 80. Your monthly payments will cover the interest, and the capital amount will need to be repaid at the end of the term.
  • You will need to repay this mortgage before the oldest borrower reaches 80 years of age
  • Only available to those who are mortgage free (unencumbered)
  • You may borrow up to 30% of your property value
  • Your property must be worth at least £250,000 plus the value of your loan e.g. if you borrow £25,000 your property must be worth at least £275,000.
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Repayment

  • You'll pay off the full loan amount plus interest over the agreed term
  • You will need to repay this mortgage before the oldest borrower reaches 90 years of age
  • Available for purchasers or remortgagers
  • You may borrow up to 50% of your property value and this must be your main residential property
  • Your property must be worth at least £100,000
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Important information

  • For joint mortgages, we will make sure the loan remains affordable in the event of death of one party.
  • Your home could be at risk if you fall behind on your payments
  • Applications cannot be signed under an Enduring or Lasting Power of Attorney
  • You must take independent legal advice
  • You must be in receipt of pension income

Our Retirement Link Mortgages

After the initial rate period, all of our mortgages revert to the Bank of England Base Rate (currently 0.75%) plus 3.99% for the rest of the term

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50% Loan to Value Fixed Rate (Repayment only)

5 year fixed

until 30/06/2024

With additional benefits and cashback

Product fee
£0
Initial rate
2.99%
Overall cost for comparison
3.9% APRC

Early repayment details

If you fully repay your mortgage before the end of your agreed term, you will pay:

  • 4% of the sum repaid until 30/06/2021 then
  • 3% of the sum repaid until 30/06/2023 then
  • 2% of the sum repaid until 30/06/2024

Overpayment details

You can overpay up to 10% of your outstanding mortgage balance each month without incurring any charges.

Followed By Rate

Bank of England Base Rate (currently 0.75%) plus 3.99% for the rest of the term.

Notes and additional benefits

  • £750 cashback paid to solicitor with advance
  • Standard Valuation Fee paid by Lender
  • Maximum Loan £500,000
  • Only available on a Capital Repayment basis

Still unsure? Call us

0800 707 6206
  • 8.30am - 7.30pm Monday - Friday
  • 9am - 1.30pm Saturday
  • Closed on Sunday
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Representative example:

This is not based on your details, it just an example to show how repayments might work for this kind of mortgage.

A mortgage of £66,000 payable over 27 years initially on a fixed rate for 5 years at 2.99% and then reverting to our tracker rate of 3.99% above Bank of England Base Rate for the remaining 22 years would require 60 monthly payments of £297 and 264 monthly payments of £351.

The total amount payable would be £110,621 made up of the loan amount plus interest (£44,411), product fee (£0), valuation fee (£0), funds transfer fee (£15), legal fee (£0) and lending fee (£195).The overall cost for comparison is 4.2% APRC representative.

Or in other words...

If you have a mortgage of £66,000 over 27 years

You will start paying a fixed rate of 2.99% for 5 years

You then pay a rate of 4.74% for the remaining 22 years

...and after 27 years, you will have paid £110,621

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30% Loan to Value Fixed Rates (Interest only)

5 year fixed

until 30/06/2024

With additional benefits and cashback

Product fee
£0
Initial rate
2.99%
Overall cost for comparison
4.2% APRC

Early repayment details

If you fully repay your mortgage before the end of your agreed term, you will pay:

  • 4% of the sum repaid until 30/06/2021 then
  • 3% of the sum repaid until 30/06/2023 then
  • 2% of the sum repaid until 30/06/2024

Overpayment details

You can overpay up to 10% of your outstanding mortgage balance each month without incurring any charges.

Followed By Rate

Bank of England Base Rate (currently 0.75%) plus 3.99% for the rest of the term.

Notes and additional benefits

  • £750 cashback paid to solicitor with advance
  • Standard valuation fee paid by Lender
  • Maximum Loan £500,000
  • Only available on an Interest Only basis

Still unsure? Call us

0800 707 6206
  • 8.30am - 7.30pm Monday - Friday
  • 9am - 1.30pm Saturday
  • Closed on Sundays
circle-outline icon person icon house-part-filled icon house-filled icon house-with-person icon

Representative example:

This is not based on your details, it just an example to show how repayments might work for this kind of mortgage.

A mortgage of £50,000 payable over 13 years initially on a fixed rate for 5 years at 3.18% and then reverting to our tracker rate of 3.99% above Bank of England Base Rate for the remaining 8 years would require 60 monthly payments of £133 and 96 monthly payments of £198.

The total amount payable would be £77,120 made up of the loan amount plus interest (£26,910), product fee (£0), valuation fee (£0), funds transfer fee (£15), legal fee (£0) and lending fee (£195).

The overall cost for comparison is 4.1% APRC representative.

Or in other words...

If you have a mortgage of £50,000 over 13 years

You will start paying a fixed rate of 3.18% for 5 years

You then pay a rate of 4.74% for the remaining 8 years

...and after 13 years, you will have paid £77,120

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Post Office Retirement Link™ vs Lifetime mortgage

Post Office Retirement Link™

  • The loan must be repaid within the agreed term
  • You are required to make payments on a monthly basis
  • Options to suit your circumstances to either make capital repayments or interest only
  • You have the option to borrow up to 50% of your property value

Lifetime mortgage

  • A mortgage that is paid off after your death, if you go into permanent care or if you sell your property
  • There are no contractual monthly repayments and interest could roll up over the life of the mortgage
  • This type of mortgage is not offered by Post Office. Should you wish to find out more, please follow the link below.
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With you each step of the way

We want to make sure you make the right choice for you, so we have made these advised products. This means we will give you free professional advice before you apply and throughout the entire process.

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Post Office Retirement Link™ FAQs

What happens if I have a joint mortgage and the main income earner dies before the loan is paid back?

When we assess affordability we will be taking this into account and ensuring it is affordable for the lowest pension income survivor.

What other sources of income can I have if my pension is not enough?

We will only be looking at guaranteed pension (state and private) income for the assessment of affordability for this mortgage

Are there any restrictions on what I can use this loan for?

Yes – standard exclusions apply. Not allowed for debt consolidation, speculation (investments) or payment of care fees.

What is the maximum term for the capital repayment option?

35 years.

What is the minimum income required?

For a sole borrower we will require a minimum pension income of £15,000 from state and/or private pensions. For joint borrowers we will require that following a death of either party the survivor has a minimum pension income of £15,000 from state and/or private pensions.

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Definitions

Approval in Principle (AIP)

An AIP indicates how much you could borrow based on the information you have provided, it performs various criteria and credit reference agency checks, and gives a conditional decision to lend based on its findings.

APRC

Annual Percentage Rate of Charge - this shows the overall cost of borrowing, taking into account the term, interest rate and other costs.

Higher Lending Charge

A fee which may be charged if the amount borrowed is more than a given percentage of the value of the property. The lender will use the fee for an insurance policy to protect them against financial loss in the event of a borrower not meeting their mortgage payments. The fee is usually payable in full up front. You may be liable for any mortgage shortfall debt if after possession the sale proceeds are not enough to repay your outstanding debt. Choose a Post Office Money mortgage and the Higher Lending Charge is paid by the lender for mortgages above 75% LTV. No Higher Lending Charge is payable for mortgages up to 75% LTV. See the Lending Criteria for more information.

Loan to Value (LTV)

It’s the amount of mortgage expressed as a percentage of the value of the property or purchase price, whichever is lower. For example, a mortgage of £80,000 on a purchase price of £100,000 would be 80% LTV. If the valuation of the property is lower than the price you've agreed, the LTV will be based on the valuation.

No product fee

There is no product fee to pay. This is ideal if you do not want to pay a product fee or add one to your mortgage.

Overall cost for comparison

The total cost of a loan, including interest charges and product fees, shown as a percentage rate. The calculation assumes that you keep the mortgage for the full term. APRC is the industry standard calculation and allows you to directly compare mortgages from all lenders.

Product fee / Standard legal fees

Product fee: This is a fee charged on some mortgages as part of the product. It can be paid upfront or added to the loan. If you add it to your mortgage it will increase your outstanding balance and interest will be charged for the duration of the mortgage. Standard legal fees: If your mortgage states that standard legal fees are paid by the lender, the lender will pay the fees if you use their nominated solicitors. Terms and conditions apply, additional legal work may incur additional fees, please refer to the General Lending Criteria for full details.

Standard legal fees

If your mortgage states that standard legal fees are paid by the lender, the lender will pay the fees if you use their nominated solicitors. Terms and conditions apply, additional legal work may incur additional fees, please refer to the General Lending Criteria for full details.

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Contact us or apply

Apply online with advice

We will give you a call during the application process to make sure this product is right for you.

Arrange a call back

Select a time that suits you and we'll give you a callback

Call us on

0800 707 6206
We are available 8.30am - 7.30pm Mon - Fri and 9.00am - 1.30pm Sat
Closed on Sundays

Small print

Please note our online mortgage application is only compatible with Internet Explorer 9+, Google Chrome 34+, Firefox 28+, Safari 5 and 7 web browsers and is not optimised for mobile phones. Subject to status and lending criteria. Written mortgage illustrations available upon request. Borrowers must be aged 18 or over.

 

Post Office Money® Mortgages are provided by Bank of Ireland (UK) plc. Post Office Limited is an appointed representative of Bank of Ireland (UK) plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Post Office Limited is registered in England and Wales. Registered Number: 2154540. Registered Office: Finsbury Dials, 20 Finsbury Street, London, EC2Y 9AQ. Post Office Money® and the Post Office Money® logo are registered trademarks of Post Office Limited. Our FCA Register Number is 409080. You can confirm our registration on the FCA's website (www.fca.org.uk