Hanley Economic Building Society has expanded its range of Retirement Interest-Only (RIO) mortgages into Scotland with immediate effect.
The RIO range was first launched in England and Wales in November 2018. It is based around two main products, both for house purchases and remortgages. There’s a 3.49% variable discount at a maximum loan-to-value (LTV) of 50% and a 3.74% variable discount with a maximum LTV of 65%
David Lownds, head of marketing and business development at Hanley Economic Building Society, said: “The Scottish mortgage market is an increasingly important area of lending for the society.
“We are constantly building strong relationships with intermediary partners who will benefit from the recent extensions in our range of lending options to meet growing demand from an array of borrowers north of the border.
“Later life lending is an area which is capturing the attention of the intermediary community and borrowers, although education and innovation is key in ensuring that this product type best fits the immediate and future needs of those borrowers in their twilight years.
“And this is an area we will continue to focus on across our overall RIO proposition in the coming months.”
The minimum loan size for the range is £10,000, with a maximum loan size of £750,000. There is a minimum age of 55 years with no maximum age and the borrower(s) must be retired. For joint mortgages each borrower will need to afford the mortgage in their own right.
If borrowers have a Lasting Power of Attorney (LPA) in place Hanley Economic Building Society will further discount the headline rate by 0.50%, and it will apply this discount at a later date should borrowers wish to obtain an LPA further down the line.
For cases in Scotland – a Lasting Power of Attorney is known as a Continuing Power of Attorney.
In November Hanley Economic Building Society extended its self-build, residential and near prime offerings into Scotland. It has surpassed its six-month application and advances target in the Scottish residential and self-build markets by 66% and 23% respectively.