Hanley launches retirement interest-only mortgages

Hanley launches retirement interest-only mortgages

Hanley Economic Building Society has launched a range of retirement interest-only mortgages to support borrowers in their later life.

The range is based around two main products, including a 3.49 per cent variable discount at a maximum loan-to-value (LTV) of 50 per cent for house purchase and remortgage purposes.

The other loan is a 3.74 per cent variable discount with a maximum LTV of 65 per cent, which is also for house purchase and remortgage purposes.

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The minimum loan size for the range is £10,000, with a maximum loan size of £750,000.

There is a minimum age of 55-years-old with no maximum age but borrowers must be retired.

For joint mortgages each borrower will need to afford the home loan in their own right.

David Lownds, head of marketing and business development at Hanley Economic Building Society, said: "As mutual building society we realise the need to support borrowers throughout their lives.

"Our retirement interest-only mortgages aim to fit the needs of older borrowers who are looking to remain within their current home but use some of the equity to fulfil a better retirement.

"For some this will mean carrying out home improvements, for others it will be to help their children or grandchildren to get onto the property ladder."

If borrowers have a Lasting Power of Attorney (LPA) in place Hanley Economic Building Society will further discount the headline rate by 0.5 per cent , and it will apply this discount at a later date should borrowers wish to obtain an LPA further down the line.

Carl Shave, director at Suffolk-based Just Mortgage Brokers, said: "Later life lending continues to be an ever-growing part of the mortgage market and Hanley Economics new retirement interest-only mortgage is further evidence that lenders are starting to see this as a business opportunity. 

"The product is well positioned in the market and is a welcome addition to an ever-growing sector.  I am sure it will be welcomed by brokers in the search for solutions to their ageing clientele's borrowing needs."