Beverley Building Society has launched a retirement interest only (RIO) mortgage, a package for older borrowers looking for mortgage terms with no maximum age or loan term.
The Beverley’s Head of Lending, Graham Carter, says: “RIO is a natural extension to our existing later life lending offering, which is proving to be very popular given current market demand from older borrowers. “
“Since the introduction of the new pension freedoms, we think our RIO mortgage offers people an affordable way of unlocking some equity from their home without interest rolling up and increasing the capital debt over the term of the loan.”
“It’s a cost-effective way of accessing cash which can be used to either top-up retirement income, gift a deposit to a younger family member as part of their legacy planning, raise capital for a specific purchase or simply having a nest egg of cash for that rainy day.”
The Beverley’s discounted mortgage rate is available to anyone over the age of 55 and in receipt of pension income. The offer is a three-year discounted variable interest rate of 2.99 per cent representing 2.00 per cent off the Society’s Standard Variable Rate, which is currently 4.99 per cent.
The product fee is GBP495 for applicants with a Lasting Power of Attorney in place, or GBP795 for those without.