"In later life, borrowers can still be in a state of flux when it comes to income streams and how they’d like to use their money, so our enhanced Later Life portfolio will offer a flexible, easy and more personalised approach to mortgages."
- Brendan Crowshaw - Vernon Building Society
Vernon Building Society has broadened its range of later life mortgages for borrowers in England and Wales aged 55 and over, catering to those already retired or approaching retirement during their mortgage term.
The expanded portfolio includes Into Retirement, In Retirement, and Retirement Interest-Only (RIO) products, which can accommodate a variety of income streams, including existing assets and pension provisions on a drawdown basis, even if they are not currently being used.
Into Retirement has no maximum age limit and offers a 5-year fixed rate at 4.74% with a £999 fee and free valuation, as well as a 2-year discounted rate at 4.65% with a £499 fee and 25% overpayment allowance without charge. In Retirement also has no age cap, with a 5-year fixed at 4.74% (£999 fee, free valuation) and a lifetime discount at 4.89% (£499 fee, free valuation, no early repayment charges).
The Retirement Interest-Only option has a new maximum LTV of 60% and offers a 5-year fixed at 5.09% with no fee and free valuation. The 2-year discount at 4.99% comes with a £499 fee, free valuation, and 25% overpayment allowance without charge, while a lifetime discount at 5.09% (£499 fee, free valuation, no early repayment charge) is also available.
Vernon Building Society reports a 158% increase in RIO mortgages from January to May 2025 compared with the same period last year, reflecting a continued trend of retirees purchasing homes or releasing equity. Borrowers typically pay interest until the mortgage is repaid, often using proceeds from the property sale when moving into long-term care or upon passing away.
Brendan Crowshaw (pictured), head of mortgage and savings distribution at Vernon Building Society, said: “In later life, borrowers can still be in a state of flux when it comes to income streams and how they’d like to use their money, so our enhanced Later Life portfolio will offer a flexible, easy and more personalised approach to mortgages."
“Every case we receive is personally underwritten, ensuring clients’ individual circumstances are understood. We recognise that later life lending isn’t one-size-fits-all. Whether clients are managing pensions, downsizing, supporting family, or unlocking equity for lifestyle needs, our products are designed to adapt to their evolving goals.”
