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Hinckley & Rugby introduces new later life mortgages

Tom Belger | 07:28 Wednesday 9th January 2019

Hinckley & Rugby Building Society has launched two new residential mortgages for later life borrowers of any age.

The mortgages – a lifetime discount and a two-year fix – come with the option of interest only for up to 60% of the property value.

The lifetime discount has an initial pay rate of 2.79%, while the two-year fix is at 2.99%.

The new products are specifically for later life borrowers who will be over 75 at the end of the term. 

Both have fees of £199 on application and £800 on completion, with free valuations up to £1m. 

The products also have a maximum LTV of 80% and for those buyers who are downsizing, up to 50% can be interest only. 

For cases where the proposed mortgage repayment vehicle is the sale of a different property, the interest-only element can be up to 60%. 

The new products come after the building society changed its later life range in November by removing any maximum age limit for the term end of its entire range of mortgages, including BTL.

Carolyn Thornley-Yates, head of sales and marketing at Hinckley & Rugby (pictured above), said that doing away with a fixed age limit and considering each application individually had been warmly received by brokers.

“The next step was to create products specifically for later life borrowers, and these first two mortgages have been carefully designed to give buyers the flexibility of a significant element of interest only, if that is appropriate for their circumstances.

“We will look at each application in the round at the daily meetings of our mortgage referrals committee of six senior staff, including the chief executive and chief customer officer. 

“Where we can lend, we will lend.”

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