Specialist lender Aldermore is entering the later-life lending market with the launch of a range of products available on loans of up to £400,000.
The new offering is aimed at applicants aged 55 to 85 who want to release equity from their homes without selling up and will feature 2, 3, 5 and 10-year fixed rate mortgages as well as a variable option.
There will be no limit on overpayments and no early repayment charges on the variable product.
On the 10-year fixed rate product, no early repayment changes will be applicable after five years.
A maximum LTV of 60 per cent is available for interest-only products and a maximum LTV of 75 per cent applies for capital repayment. The products are available on a purchase or remortgage basis.
Affordability is assessed on the income at the outset of the loan (if the borrower has not already retired) and actual or anticipated retirement income, with the lowest outcome determining the maximum loan amount.
An online calculator has been created to allow brokers to assess affordability and the products will be available from Monday 14 May.
Aldermore commercial director Charles McDowell says: “The house buying journey has changed markedly over the years. First-time buyers are more likely to be in their 30s or 40s, second-stepping is delayed and retirement is later. It is our responsibility as a specialist lender to ensure we evolve our offering to address this change and we have worked hard to build a proposition that we are confident will meet this need.
“We also believe that a change is needed in the way we consider later life lending. The people this product is aimed at do not make up one homogenous group and shouldn’t be treated as such. Our simple to use bespoke later-life lending calculator allow us to access each application on its own merits.”