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If you’re over 55, retired or receiving a pension, you may still be able to get a secured loan against your property.
Some secured loan lenders accept State Pension, company pension and private pension income when assessing affordability. Others can consider applicants who are still working later in life, with some lenders offering loan terms that run up to age 85.
At Willows Finance, we work with specialist lenders that consider applications from older homeowners, including pensioners and retirees.We can also explore options in more complicated circumstances, such as borrowing against a property that already has an equity release or lifetime mortgage.
Whether you’re planning home improvements, helping family members or funding another acceptable purpose, we can help establish which lenders may consider your age, income and property arrangements.
Yes. Being retired or receiving pension income doesn’t automatically prevent you from getting a secured loan. Lenders will want to establish that you have enough reliable income to afford the repayments throughout the proposed loan term.
Depending on the lender, this could include:
State Pension income
Company or occupational pensions
Private pension income
Other regular, verifiable retirement income
Employment or self-employment income, where the lender accepts it
The lender will also consider your credit history, existing financial commitments and the equity available in your property.
If you’re retired and unsure whether your pension income is sufficient, our advisers can review your circumstances and identify lenders whose criteria may be suitable.
Yes. Most secured loan lenders will consider regular pension income when assessing affordability.
This can include income from the State Pension, an occupational pension provided by a previous employer or a private pension arrangement.
For example, someone receiving a State Pension alongside a company pension may be able to use both income sources in their application.
The lender will normally need evidence of the amounts received and may want to establish whether the payments are expected to continue throughout the loan term.
Depending on the lender, useful documents may include:
A recent State Pension statement or award notification
Occupational or private pension statements
Bank statements showing pension payments
Other documents confirming regular retirement income
The exact paperwork varies between lenders. At Willows Finance, we can help establish which income sources a lender may accept and what evidence you’ll need before applying.
Some specialist secured loan lenders will consider applications where the borrower is aged up to 85 at the end of the loan term, subject to affordability and other lending criteria.
However, not every lender has the same maximum age limit. It’s also important to distinguish between your age when you apply and your age when the loan finishes.
For example, a lender with a maximum age of 85 at the end of the term might consider a 10-year loan for someone aged 75, provided the application meets its criteria.
Other lenders may have lower age limits or different requirements depending on whether the applicant is working or retired.
If you’re concerned about being too old to apply, our advisers can check the maximum age and term limits across suitable lenders.
Potentially. Some secured loan lenders will consider employment or self-employment income from applicants who continue working later in life.
However, the age until which a lender will accept earned income can be different from its maximum age for lending.
For example, some lenders may assess employed or self-employed income up to age 75.
This means a borrower aged 60 who intends to continue working until 75 might be considered for a 15-year term based on employment income, subject to the lender’s criteria.
In that situation, evidence of pension income may not be required if the lender is satisfied that the employment income can support the full term.
Other lenders may apply a lower age limit for earned income or ask for evidence of retirement income if the loan continues beyond the age at which they expect the applicant to stop working. The lender may also consider the type of work involved and whether the income is reasonably expected to continue.
If you’re working beyond the usual retirement age, we can check which lenders may accept your income and what loan terms they could consider.
Yes. Some lenders can consider a loan term that continues beyond your planned retirement date, provided the repayments remain affordable.
For example, you might be aged 62, currently employed and planning to retire at 67.
If you apply for a 15-year secured loan, the lender may need to assess both your current employment income and the pension income you expect to receive after retirement.Depending on the lender, you may be asked for pension statements or other evidence of your expected retirement income.
Some lenders can offer terms running up to age 85 where sufficient qualifying income is available. The important question is whether the lender can establish that you can afford the repayments throughout the term, not simply whether you’re below a particular age when you apply.
If you’re approaching retirement, tell us when you expect to stop working and what pension income you anticipate receiving. We can check which lenders may accept that arrangement.
Potentially. This is a specialist lending situation, but we currently work with a lender that can consider a secured loan behind an existing equity release or lifetime mortgage. A lifetime mortgage is a form of equity release secured against your home. Unlike a conventional repayment mortgage, the balance may increase over time if interest is added rather than paid each month.
Because an existing lifetime mortgage already has a claim against the property, relatively few secured loan lenders are prepared to offer additional borrowing behind it.However, one lender on our panel can consider a second-ranking secured loan, subject to specific limits and other conditions.
The lender’s criteria currently include:
Maximum combined loan-to-value (LTV): 55%
Maximum LTV for the existing equity release mortgage: 40%
Maximum additional secured loan: £50,000
The 55% limit relates to the total borrowing secured against the property, including the existing lifetime mortgage and the proposed new loan.
If your property is worth £100,000:
| Property and borrowing | Amount |
|---|---|
| Property value | £100,000 |
| Existing lifetime mortgage | £40,000 |
| Existing equity release LTV | 40% |
| Maximum combined borrowing at 55% LTV | £55,000 |
| Potential additional secured loan | £15,000 |
In this example, the existing lifetime mortgage uses 40% of the property’s value.
The maximum combined borrowing is £55,000, leaving £15,000 of potential additional borrowing within the lender’s 55% combined LTV limit.
This is an illustration of the LTV calculation, not a guaranteed loan offer. The lender would still need to assess affordability, the existing lifetime mortgage and its other eligibility requirements.
The £50,000 maximum loan is a separate cap, so the amount available could be lower depending on the property value and existing borrowing.
As well as the loan-to-value limits, the lender may need to review:
The outstanding lifetime mortgage balance
The property’s current value
The terms and conditions of the equity release arrangement
Whether the proposed additional charge is permitted
Your income and ability to afford the new repayments
Any legal or consent requirements
These applications can be more complicated than standard secured loans and may take longer to arrange.
If you already have a lifetime mortgage, let us know the approximate property value and current outstanding balance. We can check whether the specialist lender’s criteria may fit your circumstances.
Potentially. Some borrowers plan to use money from a pension lump sum to repay part or all of a secured loan when they retire.
For example, you might take out a secured loan while you’re still working and intend to repay the balance when you access pension funds.
However, the lender must be satisfied with the proposed repayment arrangements, and not every loan is designed to be repaid in this way.
If you repay the loan before the agreed end date, early repayment charges may apply.
You should also consider how accessing pension funds could affect your retirement income and whether any tax implications arise.
If you intend to use a pension lump sum, we can help establish the lender’s requirements and explain any relevant early repayment conditions.
It’s also sensible to obtain appropriate pension or financial advice before making decisions about accessing retirement savings.
Yes, potentially. Some specialist lenders can consider applications from homeowners over 75, with lending available up to age 85 at the end of the term in certain circumstances.
The lender will want to establish that the repayments are affordable and that your income meets its criteria. For many applicants over 75, this will involve assessing pension income or other regular, verifiable sources of income.The amount you can borrow and the available repayment term will depend on your age, property equity, credit history and financial circumstances.
If you’re over 75, we can check which lenders may consider your application rather than assuming that age alone prevents you from borrowing.
Secured loans are generally available to applicants aged 18 or over, subject to the lender’s eligibility criteria.
You will also need to have a suitable ownership interest in the property being used as security.
This page focuses on borrowing for people over 55, but the general minimum age for a secured loan is not linked to retirement or pension status.
Depending on the lender, secured loans may be available for a range of acceptable purposes.
For example, retired homeowners may want to raise funds for:
Home improvements or repairs
Adapting a property for changing needs
Helping family members financially
Travel or other personal expenditure
Consolidating existing borrowing
Not every lender accepts every loan purpose.
If you’re considering a secured loan to make a gift to a family member, it’s especially important to consider how the repayments could affect your finances in retirement.
Our advisers can check whether your intended use of the funds is acceptable to a suitable lender.
The exact requirements depend on the lender and the income you’re using to support the application.
You may need:
Proof of identity and address
State Pension statements or award notifications
Occupational or private pension statements
Bank statements showing pension income
Payslips or self-employment documents if you’re still working
Details of your existing mortgage or secured loans
Information about your property and its estimated value
Details of an existing lifetime mortgage, where applicable
If your proposed loan term extends beyond your planned retirement date, the lender may also ask for evidence of your expected pension income.
We can help you understand which documents are required before your application is submitted.
A secured loan may be an option for some retired homeowners, but it’s important to consider the risks carefully.
The repayments need to remain affordable alongside your regular living costs and any changes to your retirement income.
You should also compare the overall cost of borrowing, including interest and fees, and consider whether another finance arrangement may be more appropriate.
If you’re considering a secured loan alongside equity release, the existing lifetime mortgage terms and the effect of further borrowing on your remaining property equity are particularly important. Taking out a secured loan is a significant commitment because your property is used as security.
Your home may be repossessed if you do not keep up repayments on a loan secured against it.
Being over 55, retired or receiving a pension doesn’t automatically prevent you from getting a secured loan.
At Willows Finance, we work with lenders that accept pension income, consider older applicants and, in certain circumstances, allow borrowing behind an existing lifetime mortgage.
Our advisers can help you understand which lenders may accept your age, income and property arrangements.Already retired, planning to retire during the loan term or have an existing lifetime mortgage? Tell us when you enquire so we can check the most relevant lender criteria. Request a free, no-obligation quote or call 01656 766 158 to speak with one of our experienced advisers.
Getting an initial quote won’t affect your credit score.
Getting a quote won’t affect your credit score
We’re extremely proud to be rated ‘Excellent’ for our service standards. We’ve helped thousands of customers across the UK over the last 15 years to find the right finance for their needs – no matter how complicated the circumstances. And we look forward to helping you.
At Willows Finance we ensure your personal information is kept secure and confidential.
PRIVACY OF YOUR INFORMATION
At Willows Finance Ltd, we appreciate that your privacy is extremely important to you. With this in mind, we have put in place a number of measures to ensure that any personal details we obtain from you as a result of visiting this website is processed and maintained in accordance with accepted principles of good information handling and also in accordance with the Data Protection Act 1988.
This statement provides you with details of the type of information we may hold about you, how we obtain and use information and how we protect your privacy.
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Authorised and regulated by the Financial Conduct Authority
Firm Reference Number: 670052
Company Number: 06678545 (Registered in England and Wales)
This document explains the services we provide, the range of lenders and products we consider, how mortgage advice may be provided, and how Willows Finance may be paid. Please read it carefully before proceeding with an application.
If you need clarification about any part of this document, please contact us on 01656 766158.
Willows Finance arranges first and second charge mortgage products. Depending on the circumstances of the application, these may include:
We also arrange both regulated and unregulated bridging finance.
Not every product will be suitable or available to every customer. The products considered will depend on your circumstances, borrowing requirements, purpose of the borrowing, property, intended use of the property and the relevant lender criteria.
Depending on your circumstances, Willows Finance may:
If you are looking to increase borrowing secured on a property which already has a regulated mortgage, there may be different ways of raising the additional funds. Depending on your circumstances, these may include:
Where applicable, we will make you aware of these alternatives before proceeding. The options we are able to assess or advise on will depend on the service being provided and the lenders available to us.
The regulatory status of a mortgage or bridging loan depends on the circumstances of the transaction, including the property, how it is or will be occupied, the purpose of the borrowing and the customer’s circumstances.
Our business includes:
We will identify the regulatory status applicable to your application and explain the service and protections that apply. The protections available to you can differ depending on the type of mortgage or loan.
The range of lenders and products we consider depends on the type of finance you require.
We offer a comprehensive range of second charge mortgages from across the relevant market using a representative panel of lenders. We review our panel regularly to ensure that it remains sufficiently broad and representative. We do not consider products that are only available by applying directly to a lender.
We only offer first charge mortgages from a limited panel of 13 lenders. We consider the first charge mortgage products made available to us by Kensington Mortgages, The Mortgage Works, Aldermore, United Trust Bank (UTB), Together, Masthaven, West One, Norton, Bluestone, Vida, Pepper Money, Mansfield Building Society and Nationwide Building Society.
We do not offer every first charge mortgage available from across the market.
We consider products from a range of lenders available to Willows Finance for the relevant transaction.
Consumer Buy-to-Let and unregulated Buy-to-Let applications are considered within the relevant first charge, second charge or bridging route, depending on the structure of the transaction.
We do not provide a whole-of-market service and do not claim to consider every mortgage or secured finance product available in the UK. Our assessment is based on the lenders and products available through our lender and distribution arrangements.
Where the applicable regulatory rules require us to identify the lenders whose products we offer, the relevant lender list will be provided to you in a durable medium as part of the initial disclosure for your application. A lender list is also available on request where applicable.
The service provided will depend on the lender, product and application route identified for your circumstances.
Where Willows Finance provides the mortgage advice, we provide an advised mortgage broking service. We will obtain information about your needs and circumstances, assess the lending options available within the scope of our service and, where appropriate, make a mortgage recommendation.
We will make it clear where Willows Finance provides the mortgage advice and recommendation.
We may also provide a packaging service. This is a non-advised administrative service under which we may collect information and supporting documents, complete administrative checks, liaise with the relevant parties and submit or progress an application.
When we provide a packaging service, we do not assess the suitability of the mortgage, provide mortgage advice or make a personal recommendation. Any regulated mortgage advice or recommendation will be provided by the appropriately authorised intermediary responsible for advising you.
Our packaging service is not a regulated advisory service. However, the mortgage itself and any arranging activity connected with it may still be regulated and subject to the applicable regulatory requirements. We will explain the nature and regulatory status of the service we are providing before you proceed.
For some applications, particularly certain second charge mortgage applications, our sourcing exercise may identify a route where the subsequent mortgage advice is provided by another regulated mortgage intermediary.
In these cases, the Willows Finance service may include:
After the introduction, the receiving intermediary may take over the detailed application, advice and recommendation process. We will make it clear where this type of referral arrangement applies.
Where our sourcing process identifies Evolution Money Limited as an appropriate route and we introduce your application to Evolution Money, Willows Finance will not provide the regulated mortgage advice or make the final mortgage recommendation in relation to the Evolution mortgage.
Following the introduction, Evolution Money Limited will take over the detailed application and advisory process. Evolution Money will assess your needs and circumstances and will be responsible for any regulated mortgage advice and recommendation it provides in relation to the Evolution mortgage.
Willows Finance remains responsible for the service it provides before and in connection with the referral, including its initial assessment, sourcing and introduction activity.
If you are experiencing financial difficulty, or if you are considering borrowing to consolidate existing debts, free and impartial debt advice is available from MoneyHelper and other free debt-advice organisation.
MoneyHelper: www.moneyhelper.org.uk
You should consider obtaining free debt advice if you are unsure whether further borrowing or debt consolidation is right for you.
We process your personal information in accordance with our Privacy Policy. Where we introduce you to a lender or another intermediary, that organisation will process your information in accordance with its own privacy information.
Willows Finance Privacy Policy: willowsfinance.co.uk/privacy-cookie-policy/
The way Willows Finance is paid depends on the lender, product and application route. We may receive a fee paid by you, commission paid by a lender or another third party, or a combination of these. We will explain the basis on which we will be remunerated in connection with your application.
Where Willows Finance off an advised service our fees are split into two parts. A fee for the advice you receive and a fee for the processing of the application to completion. Both of these fees can be added to the loan rather than paid upfront or you have the option of paying them in advance. We do not arrange loans below £10,000.
For the advice the fee is as follows;
For a first charge mortgage, our advice fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,250.
For a second charge mortgage, our advice fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,750.
For a first charge mortgage, our processing fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,250.
For a second charge mortgage, our processing fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,750.
| Service | First charge | Second charge |
|---|---|---|
| Advice fee | 5%, min £625, max £1,250 | 5%, min £625, max £1,750 |
| Processing fee | 5%, min £625, max £1,250 | 5%, min £625, max £1,750 |
On borrowing of £10,000 5% would be £500, but the minimum fee for advice and processing means that we would charge £625 for each to £1250 in total.
On borrowing £20,000 the total fees would be £2,000
On borrowing £50,000 the maximum fee means that we would charge a total of £2500 for a 1st charge mortgage and £3500 for a 2nd charge mortgage.
If your mortgage or loan completes following an introduction made by Willows Finance, we will receive commission from the lender or another third party in the distribution chain unless we tell you otherwise. Different lenders may pay different amounts and may use different commission models.
Commission models may include:
The availability or amount of commission does not determine which lender we consider appropriate for your circumstances. Where applicable, we will tell you that commission will be received.
For an MCD regulated mortgage (a mortgage within the Mortgage Credit Directive rules), where the exact amount of commission is not known at the time of the initial disclosure, we will tell you that the actual amount will be disclosed later in the ESIS. Where applicable and on request, we will also provide information about how commission levels vary between lenders offering the mortgage being considered.
Where we introduce you to Evolution Money, the commercial arrangement is different from a broker fee charged directly by Willows Finance.
Under the current Evolution arrangement, Evolution Lending charges a Product Fee equal to 10% of the net loan advance, subject to a maximum of £5,000. If the mortgage completes, Evolution pays the corresponding amount to Willows Finance as commission/remuneration for the sourcing, distribution and introduction service.
The amount of the product fee and the amount of remuneration payable to Willows Finance will be disclosed to you in the relevant mortgage documentation before completion.
Example: on a £10,000 net advance, a 10% Product Fee would be £1,000. The actual Product Fee and the amount of commission payable to Willows Finance will be set out in the relevant Evolution mortgage documentation before completion.
If you choose to add a Product Fee or other fee to your mortgage, interest will be charged on that amount while it remains outstanding, increasing the total amount you repay.
Where a Willows Finance fee is payable only on completion, it will not become payable if the mortgage does not complete. Any fee payable before completion, third-party costs and the circumstances in which a fee is refundable or non-refundable will be explained where applicable.
Fees which have become payable following completion are generally non-refundable unless the relevant contractual terms, applicable law or regulatory redress require otherwise.
Before you become bound by a regulated mortgage, you will receive the relevant mortgage illustration or European Standardised Information Sheet (ESIS) and the lender’s offer documentation as applicable.
These documents contain important information about the proposed mortgage, which may include:
Please read these documents carefully. If anything is unclear or does not reflect your understanding, contact the firm responsible for the advice or recommendation before proceeding.
You may tell us that you no longer wish to proceed with an application before completion. Whether any third-party cost is payable or refundable will depend on its own terms.
For an MCD regulated mortgage (a mortgage within the Mortgage Credit Directive rules), the lender will provide a binding offer with a reflection period of at least seven days. You may normally accept the offer during that reflection period if you decide to proceed.
Once a mortgage has completed, there is generally no right simply to cancel or withdraw from the mortgage. You may have a right to repay the mortgage early in accordance with its terms, and an early repayment charge may apply.
Always check the early repayment section of the ESIS and mortgage offer before completion if early repayment or regular overpayments are important to you.
If you miss or make late payments, the lender may apply charges, and your credit record may be affected. Continued failure to maintain payments may result in enforcement action and ultimately repossession of the property used as security.
If you are experiencing financial difficulty, contact your lender as soon as possible and consider obtaining free independent debt advice.
Consolidating existing debts into a mortgage can reduce monthly payments but may increase the total amount of interest you pay if the borrowing is repaid over a longer period.
Debts which are currently unsecured may become secured against your home. Extending the repayment period may mean that you pay considerably more overall even where the monthly payment is lower.
Interest rates on variable-rate mortgages can increase, which may increase monthly repayments and the total amount repaid.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.
If you are dissatisfied with any aspect of the service provided by Willows Finance, please contact us:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Telephone: 01656 766158
Email: [email protected]
We will investigate your complaint in accordance with our complaints procedure. If you remain dissatisfied with our final response, or in other circumstances where you are eligible to do so, you may be able to refer your complaint to the Financial Ombudsman Service.
Financial Ombudsman Service: www.financial-ombudsman.org.uk
Where another regulated intermediary has provided the mortgage advice or recommendation, complaints about that firm’s advice should normally also be raised with that firm. You can still complain to Willows Finance about the service provided by Willows Finance.
The Financial Ombudsman Service can generally consider complaints about regulated or otherwise covered activities, including certain activities that are ancillary to them. It may not be able to consider a complaint that relates solely to an unregulated product or service and has no connection with a regulated or otherwise covered activity. Whether a complaint falls within its jurisdiction will be determined by the Financial Ombudsman Service based on the individual circumstances.
Willows Finance Limited is covered by the Financial Services Compensation Scheme for eligible regulated activities. If an authorised firm is unable to meet an eligible claim, compensation may be available from the FSCS.
For protected home finance mediation, the current compensation limit is 100% of an eligible claim up to £85,000 per eligible claimant, per firm. Eligibility depends on the circumstances of the claim and the applicable FSCS rules.
FSCS protection does not generally apply to a claim arising solely from an unregulated product or service, including any packaging service that falls outside regulated home-finance mediation. Whether a claim is eligible will depend on its individual circumstances and the applicable FSCS rules.
Further information: www.fscs.org.uk
Once we have received sufficient information about your circumstances and requirements, we will carry out the relevant initial assessment and sourcing process and explain which application route applies to you.
Where Willows Finance provides the mortgage advice, we will continue through our advised mortgage process and explain any recommendations made.
Where your application is referred to another regulated intermediary, such as Evolution Money, we will explain that the receiving intermediary will take over the subsequent application and advisory process where applicable.
Please review all mortgage illustrations, ESIS documents, fee and commission disclosures, offer documents and other terms carefully before deciding whether to proceed. If anything is unclear, ask before committing to the mortgage.
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