Hanley Economic Building Society has launched a range of retirement interest-only (RIO) mortgages.
The range is based around two main products. The first being a 3.49% variable discount at a maximum LTV of 50% for house purchase and remortgage purposes. The second being a 3.74% variable discount with a maximum LTV of 65% for house purchase and remortgage purposes.
The minimum loan size for the range is £10,000, with a maximum loan size of £750,000.
David Lownds, head of marketing and business development at Hanley Economic Building Society, said: “As mutual building society we realise 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 onto the property ladder.
“We are encouraging borrowers to have a Lasting Power of Attorney (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.”
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.