Saffron Building Society has launched a retirement interest-only mortgage product through Legal and General Mortgage Club.
The offering is a 50 per cent LTV three-year discounted fix at 3.64 per cent, or at 3.34 per cent, although the lower rate requires a power of attorney to be in place for the applicant.
In addition, this product has an arrangement fee of £999, a maximum loan value of £1m, and is available for purchase or remortgage.
The offering also has an ERC set at 3 per cent, and a 20 per cent penalty per annum for overpayments.
Saffron Building Society head of mortgages Anita Arch comments: “Retirement today looks and feels very different from how people viewed it in the past.
“Having asked brokers, many of their customers want to be able to enjoy travel, develop their home or help younger family members to buy a house of their own for instance.
“They want to be able to do this whilst protecting equity in their home.
“Utilising the capital linked to homeownership has become a popular way of financing people’s lifestyle in retirement.”
Legal & General Mortgage Club head of lender relationships Danny Belton says: “With a growing number of people borrowing into retirement, it is positive to see Saffron cater to the needs, hopes and dreams of today’s retirees, providing them with greater choice and flexibility.”