Saffron Building Society has announced that its retirement interest-only mortgage product is now available across its entire network of broker partners.
The offering is a 50 per cent LTV three-year product with a discount of 2.3 per cent, giving an initial rate of 3.34 per cent. This option retires a power of attorney to be in place for the applicant.
The building society also offers the same product with a discount of 2 per cent, giving an initial rate of 3.64 per cent, and without the need for a POA.
The deal includes a £999 fee, an early repayment charge of 3 per cent for the duration of the term, 20 per cent penalty free per annum on overpayments, and a maximum loan value of £1m.
Furthermore, the product has no maximum term and is available for both purchase or remortgage.
Saffron Building Society head of mortgages sales Anita Arch says: “Many consumers do not think it is possible to obtain a mortgage in retirement let alone get one that can help fund a lifestyle.
“People are living longer and are expecting to maintain a certain standard of living during this time.
“Our RIO product utilises the capital linked to homeownership and is becoming a popular way to finance living in later life.”