"There has been increasing talk about the ‘interest-only timebomb’ and what borrowers with such products would do as they came to the end of their terms"
The Equity Release Club has been chosen as one of Shawbrook’s restricted panel distributors and Platinum member firms will, following attendance of a Masterclass session and having passed an online test, be able to advise on Shawbrook’s recently launched 55 Plus interest-only mortgage.
Full product information on the 55 Plus mortgage is also available on the AIR Sourcing portal. The mortgage is aimed at those who are nearing the end of their existing interest-only arrangement, but have an outstanding balance. Interest-only mortgages are available up to 50% LTV with 5 to 15 year variable rate terms from 5.25% and three and five year fixed rates from 5.50%.
AIR Sourcing and the Equity Release Club, along with the Later Life Academy, are part of the Answers in Retirement Group.
Shawbrook Bank has also announced a semi-exclusive deal with The Loan Partnership to provide a packaging service for 55 Plus product.
Stuart Wilson, Group Managing Director at Answers in Retirement, commented: “We are very pleased to be announcing this new relationship with Shawbrook Bank and to be offering members of the Equity Release Club access to its new 55 Plus Interest-Only Mortgage. Over the past few years there has been increasing talk about the ‘interest-only timebomb’ and what borrowers with such products would do as they came to the end of their terms if they still had capital shortfalls to pay off.
"It is innovative and forward-thinking lenders like Shawbrook that are developing the product solutions for these borrowers, and I’m sure advisers in the later life space will be keen to explore this offering in order to help such clients. All product details are available on our AIR Sourcing portal and we are looking forward to engaging with Platinum Club members to help them begin advising and recommending on this product.”
Maeve Ward, Managing Director, Residential Mortgages at Shawbrook Bank, said: “I am delighted that the Equity Release Club has agreed to partner with Shawbrook Bank as one of our preferred partners on our new 55 Plus Interest-Only Mortgage product.
“Since we launched the ’55 Plus Interest-Only Mortgage last month, we have been really pleased to see the large demand in the market for the product. To make sure that we can continue to deliver the high levels of service to our introducers, it made perfect sense to appoint a packager who knows our business inside out and has always demonstrated a high level of understanding of our packaging and processes.”
Andy Pelley, Director of The Loan Partnership, added: “We were delighted to be approached by Shawbrook Bank to package their new product. We expect this product to be extremely well received by our introducers and look forward to packaging our first batch of applications.”
