Teachers Building Society has launched two ‘later years’ mortgage products aimed at teachers and education professionals approaching retirement or already retired.
The Later Years Home Purchase Mortgage consists of a two-year discounted variable rate of 3.99 per cent, with a maximum 75 per cent loan-to-value if not retired or 50 per cent if the applicant is already retired.
It has a maximum lending age at the end of term of 83 and a minimum of 70, while the minimum income is set at £13,000 from teachers’ pension scheme. It comes with an £899 arrangement fee and £99 application fee.
The Later Years Remortgage has a two-year discounted variable rate of 4.32 per cent, again with a maximum 75 per cent LTV if not retired or 50 per cent if already retired.
The maximum age at the time of application is 70, and the maximum age at the end of the term is 83. The product is fee free.
The mortgages have been launched to the intermediary channel in the first instance, but will be available direct in coming weeks.
James Bawa, chief executive of Teachers Building Society, said in a mortgage market where many lenders are unwilling to lend to people into retirement, it is pleased to be able to meet this increasing need.
“The society has carefully considered customer outcomes and based our decision to launch these mortgages on statistics, including Office for National Statistics data and research among teachers in England and Wales.”
Colin Dorman, national account manager for the lender, added that feedback from intermediaries regularly mentioned the fact that lenders need to cater for older borrowers as part of the lifecycle of financial needs.
peter.walker@ft.com
