"This enhancement to our existing later life mortgage range will provide additional options for borrowers aged 55 and over seeking a mortgage. "
Ipswich Building Society has launched three new retirement interest-only mortgage deals available up to 50% LTV.
The range includes a two-year discount rate at 3.00%, a two-year fixed rate at 3.25% and a three-year fixed rate at 3.35%.
The products will be available to customers across England and Wales through an exclusive panel of selected intermediaries.
All mortgages are available up to a maximum loan of £500,000 and have an application fee of £199, a completion fee of £500 and a £35 CHAPS fee.
A tiered valuation fee based on property value applies. For remortgage applicants, there is a free valuation (up to property value of £1m) and fee assisted legals. A minimum of £150,000 equity in the property is required.
The Society’s discounted rate product has no ERCs or penalties for overpayments. For fixed rate products, overpayments are fee-free up to 50% of the original loan amount. Overpayments in excess of 50% of the original loan amount, or early redemption, will be charged at 3%.
The Society offers no maximum age restriction at the end of the mortgage term.
Richard Norrington, Ipswich Building Society CEO, said: “This enhancement to our existing later life mortgage range will provide additional options for borrowers aged 55 and over seeking a mortgage. With no upper age limit and no specified term, RIO borrowers can remain in their home without the burden of worrying about repaying the capital until a significant life event such as a move into long-term care or death of the last remaining borrower, if a joint mortgage is held.
“However, RIO mortgages also serve other purposes such as allowing older borrowers who can afford the monthly interest payments to free up capital to pass on to children or grandchildren, without the need to downsize. Similarly, RIO mortgages can also be used for home extensions or property changes such as converting a house for downstairs living, which may allow an older borrower to remain independent in their own home for longer.
“We already have a significant number of older borrowers on our mortgage book and many of our savers also fall in to this category, so we very much understand their unique needs as a result of changing sources of income, lifestyle and health. We’re delighted to be extending our product range to further satisfy their needs.”