Shawbrook Bank has launched a new 55 plus interest-only mortgage.
The product is aimed exclusively at borrowers aged 55 or over who are nearing the end of their existing interest-only arrangement but have an outstanding balance.
Maeve Ward, managing director of residential mortgages, said: “We are thrilled to offer a lifeline to this underserved sector with Shawbrook’s new ’55 plus interest-only mortgage’.
“This new product not only provides peace of mind to those who do not want to sell their homes, or withdraw from their pensions, but also gives them the opportunity to borrow further to fund their future plans.”
This launch comes after the FCA estimated that 600,000 interest-only borrowers will see their mortgages mature before 2020.
Currently, many over 55’s have to resort to selling and downsizing their family home or turn to savings and pension pots.
Key features of the offering include interest-only mortgages from £25,000 to £1m, five to 15 year variable rates from 5.25%, and a maximum loan-to-value of 50%.
The maximum age of expiry of loan is 85 years old and the three and five year fixed rates start from 5.50%.
Shawbrook Bank is making this product available to brokers initially on an exclusive basis via Key Retirement Solutions.
Ward added: “We are excited to partner with Key Retirement Solutions for the launch of this new mortgage. We are thrilled to be working together removing age as a barrier.”