ERC & Marsden offer over-55s mortgage
ERC members can take out a 2-year discount at 2.99% to 40% loan-to-value on an interest-only basis at 2.79% to 60% LTV on a repayment basis.
Individuals must be in receipt of pension income, while they can be a maximum of 85 by the end of the mortgage term.
Products come with a £299 booking fee and £299 arrangement fee for properties worth at least £200,000.
Stuart Wilson, managing partner of the Equity Release Club, said: “The area of lending to those already in retirement has been pushed up the mortgage agenda because of the fallout from MMR and the tightened criteria and affordability that many lenders have introduced.
“This has led to many potential borrowers in this situation being unable to access the finance they want. Now, however, we are seeing certain forward-thinking lenders realise the market gap here and tailoring their offerings to those with known and provable retirement income.
“This is why we are particularly pleased to be working with the Marsden who are at the front of the lending pack with this type of product innovation.
“We firmly believe our members will have many clients in this predicament and therefore these lending to the retired mortgage products should find a willing audience.
“Overall, this is part of a big development push by the Equity Release Club to understand a more diverse borrowing demand from consumers and to work with members and provider partners to identify products specifically for older clients.”
Heather Crinion, general manager, operations, at Marsden Building Society, added: “We’re delighted to offer our Lending to the Retired products to Equity Release Club members.
“Intermediaries are at the forefront of our business and we are delighted with the Equity Release Club’s approach to provide an alternative for customers in instances where equity release might not necessarily be the best option for them.
“We appreciate that brokers will have some questions with the portfolio being new and for those that may not have used the society before. We are encouraging them to get in touch and speak to our intermediary team to discuss criteria and answer any questions they may have.”