Hinckley & Rugby Building Society has launched two new residential mortgages for later life borrowers, with the option of interest-only for up to 60% of the property value.
The new mortgages consist of a lifetime discount and a two-year fix and are for borrowers of any age. This follows the Society’s removal of any maximum age limit for the term end of its entire range of mortgages, including Buy to Let, in November 2018.
The lifetime discount has an initial pay rate of 2.79%, while the two-year fix is at 2.99%. Both have fees of £199 on application and £800 on completion, with free valuations up to £1 million.
While they can be used by borrowers of any age, these new products are specifically tailored for later life borrowers who will be over 75 at the end of the term.
What’s more, both have a maximum loan-to-value (LTV) of 80%. For those who are downsizing, up to 50% can be interest-only. For cases where the proposed Mortgage Repayment Vehicle is the sale of a different property, the interest-only element can be up to 60%.
“Doing away with a fixed age limit and considering each application individually has ben warmly welcomed by brokers and their clients,” said Carolyn Thornley-Yates, head of sales and marketing at Hinckley & Rugby.
She said the next step was to create products specifically for later life borrowers. These two mortgages have been designed with an aim to give buyers the flexibility of a significant element of interest-only.
“We will look at each application in the round at the daily meetings of our Mortgage Referrals Committee of six senior staff, including the chief executive and chief customer officer,” Thornley-Yates added.