Saffron Building Society has made its Retirement Interest Only Mortgages available across its entire network of broker partners.
The building society offers a 3-year discount at 3.34% to 50% loan-to-value, which requires for there to be a power of attorney in place for the applicant. There is also a 50% LTV product at 3.64% which does not have that requirement in place.
The products come with an arrangement fee of £999 and an early repayment fee of 3% for three years.
Anita Arch, head of mortgage sales at Saffron Building Society, said: “Many consumers don’t think it’s possible to obtain a mortgage in retirement let alone get one that can help fund a lifestyle.
“People are living longer and are expecting to maintain a certain standard of living during this time.
“We don’t believe customers should be limited by ‘everyday’ products – we like to be flexible and are increasingly offering more options in the ‘specialist’ space to meet customer needs more appropriately.
“Our RIO product utilises the capital linked to homeownership and is becoming a popular way to finance living in later life. We look forward to reaching out to additional brokers with this latest mortgage so they have a further option to offer to those in retirement.”