Before entering into a Retirement mortgage you should carefully consider the following things. In addition, we would always recommend that you take independent financial and legal advice.

  • Your home could be repossessed if you do not keep up with payments on your mortgage.
  • If the amount of the loan exceeds the sale value of the house when the loan is due to be repaid then the surplus amount will be due from you or your estate.
  • Borrowing against your home may reduce the value of your estate. We recommend that your family, or others who may inherit your home, are involved in the process.
  • If you wish to move to another property then we may consider transferring the loan to the new house. The decision to do this will depend upon factors such as affordability, the loan to value ratio and whether we have such products available at that time.
  • If you need to move into sheltered accommodation or long term care then the loan will become repayable from the sale of your home.
  • If your application is joint then the mortgage payments may become unaffordable in the event of death of either party.  This may necessitate the sale of the property and the survivor needing to move to alternative accommodation.  You should ensure that you have a plan for this eventuality.
  • You must ensure that the property is maintained to a reasonable standard and any essential repairs are carried out during the term of this mortgage.
  • Taking this mortgage may affect your tax position and entitlement to benefits. You should consider seeking further information from HM Revenue and Customs, Benefits Agency or another source of advice such as a Citizens' Advice Bureau.

For FAQ's about our Retirement mortgage click here.

Head office:

Vernon Building Society
19 St Petersgate

Tel: 0161 429 6262
Fax: 0161 477 3303

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

*The 'AER' stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.


Vernon Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (registration number 195475).  You can check this on the Financial Services Register. We are also a participant of the Financial Services Compensation Scheme (FSCS). Details of the scheme can be obtained from

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

For independent information about financial products and services visit

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