Retirement Interest Only – Buckinghamshire Building Society and Legal and General join to give a Helping hand for older borrowers
22 August 2018
Buckinghamshire Building Society has been at the forefront of assisting older borrowers for a number of years, offering mortgage products to those who are either already retired or will be at the end of their mortgage term. It has now launched a retirement interest-only product (RIO), to support customers who wish to stay in their own home.
Earlier this year the Financial Conduct Authority (FCA) reviewed later life lending and introduced proposals to improve access to mortgage borrowing for older people. Tim Vigeon, Head of Lending, at Buckinghamshire Building Society commented “We welcome the work conducted by the FCA acknowledging the changing demographic and financial needs of the UK population. We expect our RIO mortgage to be popular with older borrowers with interest only mortgages approaching the end of their term”.
Tim continues “Choosing a mortgage product is always a highly personal decision as individual circumstances and priorities are different and by offering RIO exclusively through L&G we are confident that customers will receive the appropriate advice that they need to make the right decision. In applying for these loans affordability is essential through the term of the loan with the mortgage being repaid on a specified life event which can include the sale of the property or moving into care. We also recognise the value of having a Lasting Power of Attorney (LPA) and to support this option we offer a reduced rate to those who have one in place”.
Danny Belton Head of Lender Relationships, L&G Mortgage Club added ‘The later life market continues to evolve to meet the needs of the older generation, and once again it is a Regional Building Society that is delivering some good options for these customers. I am delighted that the Buckinghamshire BS has decided to work with the L&G Mortgage Club on their RIO proposition, and provide these products exclusively to our members.’
LEGAL & GENERAL RETIREMENT INTEREST ONLY (RIO)
|
PRODUCT
|
INITIAL RATE
|
DISCOUNT FROM SVR
|
FOLLOW ON RATE
|
APRC
|
MAX LTV
|
ERC
|
APP FEE
|
PROD FEE
|
NOTES
|
|
RI01 Retirement Interest Only 3 year discount (without LPA)
|
3.69%
|
1.55%
|
5.24%
|
5.1%
|
65%
|
No ERC
|
£0
|
£999
|
When LPA provided - can request to switch to RI02. Min age 55 at application.
|
|
RI02 Retirement Interest Only 3 year discount (with LPA)
|
3.39%
|
1.85%
|
5.24%
|
5.0%
|
65%
|
1.5% year 1; 1% year 2; 0.5% year 3
|
£0
|
£999
|
LPA to be provided by completion. Min age 55 at application.
|
For full details of credit criteria please contact:
Jill Carpenter, Marketing Department 01494 879513 email: jillcarpenter@bucksbs.co.uk
Buckinghamshire Building Society, High Street, Chalfont St Giles, Bucks, HP8 4QB
We are a member of the Building Societies Association and the Banking Standards Board (BSB). Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registration Number 206022
Visit us at www.bucksbs.co.uk
