The Vernon Building Society has launched retirement mortgages with initial rates of 1.25% and 0.5% below the standard variable rate (currently 4.70%)
The Vernon Building Society has launched retirement mortgages with initial rates of 1.25% and 0.5% below the standard variable rate (currently 4.70%) for the first five years with no arrangement fees.
There are no age restrictions or maximum term, and mortgages can be on either repayment or interest-only terms.
Tom Gurrie, intermediary sales manager at the Vernon, said: “Our retirement mortgages are aimed to meet the unique needs of older borrowers that are either looking to release equity, remortgage or move home.
First Complete & Pink adds Scottish Building Society to panel
“We are seeing more applicants coming to the end of an interest-only mortgage in their later years who have no means to repay the outstanding debt demanded by their lender and therefore need to re-schedule their loan.
“The products are currently only available to brokers with an equity-release qualification, so we welcome the recent announcement by the FCA to review the rules on advice when discussing retirement interest-only mortgages.”
The Vernon launched its retirement product in 2015.