Hanley extends RIO range to Scotland

Hanley Economic Building Society has opened up its retirement interest-only mortgage range to properties in Scotland.

The lender first launched RIOs in England and Wales in November 2018 and Hanley says  there has been demand from Scottish brokers wanting to access the products.

It offers two discount variable rate deals, the first at 3.49 per cent up to 50 per cent loan-to-value and the second at 3.74 per cent up to 65 per cent LTV.

Mortgages are available for purchase or remortgage from a minimum of £10,000 up to a maximum of £750,000.

Borrowers must be over 55 and retired but there is no age cap.

Joint applicants must both be able to afford repayments in their own right.

For those with a Lasting Power of Attorney in place, a further discount of 0.5 per cent applies.

This discount can be deferred if the borrower wishes to obtain an LPA further down the line.

In Scotland LPA is known as a Continuing Power of Attorney.

Hanley previously expanded its self-build, residential and near-prime products into Scotland in November 2018.

Head of marketing and business development David Lownds says: “The Scottish mortgage market is an increasingly important area of lending for the Society.

“We are constantly building strong relationships with intermediary partners who will benefit from the recent extensions in our range of lending options to meet growing demand from an array of borrowers north of the border.

“Later life lending is an area which is capturing the attention of the intermediary community and borrowers, although education and innovation is key in ensuring that this product type best fits the immediate and future needs of those borrowers in their twilight years.

“And this is an area we will continue to focus on across our overall RIO proposition in the coming months.”

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