Borrowing into retirement using SIPP

The borrowers

Colin and Anne are both 60, and are married with one daughter. They would like to capital raise to gift their daughter a deposit for her first home. As well as their own home, they own two unencumbered buy to let properties with a combined value of £250k and have no credit commitments or issues. 

They are looking for a remortgage on their main residence. Their family home is valued at £550k, on which they need an interest only mortgage of £250k. 

Anne is currently employed and earning £40k a year and has a SIPP of 420k not being drawn yet.

Colin has UK land and property income of £16k showing on his latest SA302 and a pension of £83k – also not yet being drawn.

They intend to use sale of current residential or background buy to let property as the repayment vehicle.

How we can help

We can accept a wide range of incomes including up to 100% of UK land and property income and allow capital raising for buy to let or to gift deposit money for their family to purchase a property.

We are able to consider a term to age 75 (subject to employment type), so in this case up to a 14-year term. We offer residential interest only mortgages with the affordability calculated on an interest only basis up to 70% LTV, and we accept ‘Sale of property’ as an acceptable repayment method, subject to there being a sufficient amount of equity available within the mortgaged property at the start of the mortgage and the ability to downsize.

We love to talk a case through, why not call your Foundation Regional Area Manager today?

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