The Nottingham has shown its commitment to helping more people with home ownership and their finances by adding Retirement Interest Only mortgages to its portfolio.
The introduction of three Retirement Interest Only (RIO) mortgage products builds on The Nottingham’s desire to grow and reward its members with products built around them.
There are seven year fixed (3.85%), three year fixed (3.34%) and two year discount (2.99%) products available, all with a £995 fee, a free valuation and 40% Loan To Value (LTV) limit.
RIO mortgages give people in later life the option to release funds, giving them more financial planning options or to enhance their retirement lifestyle. They are available for both purchases and remortgaging.
In a recent survey of retirees over 50*, The Nottingham revealed 39% plan to spend their money whilst they are alive as opposed to leaving significant inheritance. 36% holiday three times a year and 39% class retirement as the best time of their lives. For many later life circumstances, RIO mortgages provide an interesting option.
Nikki Warren-Dean, Head of Intermediary Sales for The Nottingham for Intermediaries, said: “The addition of RIO mortgages to our portfolio adds choice for people in, or heading towards, retirement.
“Our research shows many people want to use their money to enjoy their retirement rather than having large amounts of capital tied up in their property. RIO mortgages can help, so we wanted them to be available to customers.
“It comes hot on the heels of our announcement last month to raise the maximum lending amount for 95% LTV mortgages from £275,000 to £500,000 – further highlighting our desire to be there for our customer’s mortgage needs whether it’s their first or last house.
“As with all The Nottingham for Intermediaries products, RIO mortgages are provided exclusively via our broker network so we have every confidence they will be supplied with expert advice and support to ensure it’s the right fit for the customer.”
Danny Belton, Head of Lender Relationships at Legal & General Mortgage Club, added: “The building society sector is playing a major role in helping both the first time buyer and the older borrower.
“It’s great to see The Nottingham recognise the need for improved criteria and innovation for older borrowers with their new RIO mortgage range. As their research suggests, many customers will look to raise funds to help them enjoy their retirement.”
RIO mortgages are interest-only, without a term, and have a minimum application age of 55. Redemption is at sale of the property following a life event such as the customer sadly passing away, going into care or selling the house. In the case of a joint mortgage, redemption will be when both applicants reach a life event.
Your home may be repossessed if you do not keep up repayments on your mortgage.
*1,027 retired people in the UK were interviewed online between 23rd and 24th October 2018 by independent research company Consumer Intelligence.