Hanley Economic Building Society has introduced a range of retirement interest-only (RIO) mortgages.
The new range features two main products.
The first is a 3.49% variable discount at a maximum LTV of 50% for house purchase and remortgage purposes.
The second is a 3.74% variable discount with a maximum LTV of 65% for house purchase and remortgage purposes.
The minimum loan size across the range is £10,000, with a maximum of £750,000.
The minimum age is 55 years old, with no maximum age, and the borrower(s) must be retired.
If the borrower has a lasting power of attorney (LPA) in place, Hanley Economic will further discount the headline rate by 0.50%, and it will apply this discount at a later date should the borrower wish to obtain an LPA further down the line.
David Lownds, head of marketing and business development at Hanley Economic Building Society (pictured above), said that as a mutual building society it realised the need to support borrowers throughout their lives.
“Our retirement interest-only mortgages aim to fit the needs of older borrowers who are looking to remain within their current home, but use some of the equity to fulfil a better retirement.
“For some this will mean carrying out home improvements, for others it will be to help their children or grandchildren to get on to the property ladder.
“We are encouraging borrowers to have a LPA in place by offering a 0.50% discount off the initial pay rate.
“An LPA provides peace of mind that the finances of a borrower are managed in the event of any health issues in later years.”
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