Shawbrook’s Residential Mortgages team announced that it has lowered the fixed and variable rates on its 55 Plus Interest-Only Mortgage.
With interest-only finance affecting 1.3 million customers in the UK – and approximately 65,000 set to reach maturity each year – the recently launched Shawbrook 55 Plus Mortgage represents the bank's first crucial step into the retirement lending sector.
Maeve Ward, managing director of residential mortgages at Shawbrook Bank, said: “This shift reflects our increased appetite to offer a much-needed lifeline for customers approaching the end of their existing interest-only mortgage with a large outstanding balance to pay, who wish to avoid downsizing.”
The price reductions of these products have gathered significant interest, offering a feasible way of raising finance to an even broader pool of customers in their later years.
Ward believes that the scheme is great for parents to help their children onto the property ladder or invest in a business opportunity.
“The 55 Plus mortgage also provides a helping hand to those who want to raise finance now, but where their savings are tied up,” she said. “Our no early repayment charges policy means that people can raise the money they require now, and pay it back as soon as their savings and investments become available, all without charge.”