Vernon Building Society launches retirement mortgages

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.

Advisers in Scotland with First Complete and Pink can now use the building society’s products, which include guarantor mortgages, interest-only (maximum LTV of 75%), self-build, foreign currency lending and loans for older borrowers up to the age of 85.

The Centre for Entrepreneurs, Homes for Scotland, and the Home Builders Federation have each praised the academy, which was established in 2016 to help develop the skills of aspiring and new small-scale housing developers.

The changes were first mentioned in the government’s Housing White Paper earlier this year.

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