Leeds Building Society launches into retirement interest-only mortgages
Leeds Building Society has become the first high street lender to launch into retirement interest-only mortgages.
Leeds has committed to rewarding brokers for the mortgages, while it will allow product transfers to the product.
The product won’t have a maximum age limit.
Jaedon Green, Leeds Building Society’s director of product and distribution, said: “Choosing a mortgage is always a highly personal decision and everyone’s individual circumstances and priorities are different, so it’s important consumers take the appropriate advice.
“For that reason these new mortgages will be available initially only through brokers.
“It’s important that customers have access to broker support throughout the life of their mortgage, which is why we’re committed to providing intermediary product transfer capability.
“As consumers considering this product are older, they may need more support in reviewing their wider financial circumstances and require specific financial and legal advice on aspects such as pension arrangements, estate planning and future costs for social care.”
Leeds has issued a range of resources for brokers looking to recommend the mortgage.
The lender has created a table to help brokers differentiate between recommending a standard interest-only mortgage, a retirement interest-only mortgage and an interest rollup lifetime mortgage.
The society has also given guidance on what brokers should mention, like whether the borrower should get a Lasting Power of Attorney.
Leeds hopes to be a trailblazer for other high street lenders looking to get involved in the market.