Following the news that the majority of Building Societies will be reviewing their borrower age limits, finding a mortgage in preparation for retirement is becoming increasingly easier compared to days gone by. In line with this, The Mansfield Building Society has recently launched its own interest only retirement product to further support lending to interest only customers who are either approaching retirement or have already retired.
A change which proves particularly topical following changes across the market surrounding lending restrictions to those over 65 (see our article on why it’s never too late to get a mortgage here), The Mansfield Building Society has introduced products available exclusively through mortgage intermediaries. This allows interest only mortgages to be taken out up to the age of 80, where the repayment strategy is downsizing in property.
To qualify for downsizing options the building society has stated there must be a minimum equity of £150,000 and that this must be sufficient to provide a reasonable quality home.
The latest product comes at a discounted rate of 3.19% and is available to purchase or remortgage from up to 40% loan to value (LTV), or at 2.4% below their standard variable rate for 2 years.
The Building Society’s new product compliments its existing deals which allow a mortgage term up to the age of 80, on a capital repayment or an interest only basis when combined with a mainstream repayment strategy.
Another lender to have announced changes to mortgage rates comes from Teachers Building Society, having most recently launched a discounted variable at a rate of 1.79%. Available up to 80% LTV, this comes alongside a 3.99% discounted variable rate at 95% LTV. As well as this, the building society has also introduced the offer of an intermediary exclusive 2 year fixed rate at 2.3%.
Extending their offering to the wider market, Teachers Building Society’s latest products are all available for both home purchase and remortgage clients.