"With an excess of 160,000 interest-only mortgages maturing over 2017/18 alone, a significantly increased number of borrowers aged over 55 are seeking a wider range of alternatives"
The product offers a new solution to borrowers aged 55 or over nearing the end of their existing interest-only arrangement who wish to continue paying interest on their mortgage debt in to retirement.
With both fixed and variable rate options available, the Shawbrook contract enables customers to partially or fully repay the loan without incurring any form of early repayment charge.
Shawbrook recently launched the product through AToM and Positive Lending.
Mark Gregory, CEO of Equity Release Supermarket, said: “With an excess of 160,000 interest-only mortgages maturing over 2017/18 alone, a significantly increased number of borrowers aged over 55 are seeking a wider range of alternatives to selling their home or realising their investments in order to repay their outstanding mortgage.
"With record low interest rates and equity release contracts proving more popular than ever, we continue to research every possible source of lending for customers approaching or already in retirement."
Maeve Ward, Managing Director of Residential Mortgages at Shawbrook Bank, commented: “I am so pleased to be working with Equity Release Supermarket to help them offer more financial options to those reaching the end of their interest-only mortgage, especially those aged 55 or over who have been so poorly served by the high street.”
