The Mansfield has announced that it has launched its Retirement Interest Only proposition with two new products that aim to enable borrowers to take additional drawings up to a maximum of 40% LTV.
To ensure that borrowers receive appropriate advice, access to The Mansfield’s RIO mortgages is exclusively available through qualified advisers holding the CeReR or CertER qualification.
Both products are available to borrowers over 55 years of age, and include 2.83% variable pay rate, £199 application fee, £800 completion fee and no early repayment charge for the 5 year product. the 3 year deal includes 3.35% pay rate, £199 application fee, £800 completion fee and 3% early repayment charge.
Mike Taylor, Head of Products and Savings at the Society, had this to say: “As a mutual building society, we believe it’s important that older borrowers have choice. Our common sense, straight forward and innovative approach is designed to give later-life borrowers options to help support their lifestyle needs in retirement – we believe the access to subsequent draw-downs will prove popular with borrowers.
Borrowers can access the equity they have built up in their home to help close family members get onto the property ladder, or use the funds to maintain their lifestyle and fulfil their retirement plans. In addition, provided borrowers can maintain the interest only payments going forward, our RIO mortgages can also be used to help borrowers who have an existing interest only mortgage and are unable/not yet ready, to repay the capital balance due. RIO mortgages will provide welcome relief to many who may have underestimated their financial needs in retirement.
It’s great to be offering products with new features that meet the growing needs of brokers specialising in later-life lending and adding to the reputation building societies are earning for creating common sense solutions that meet the needs of everyday people.”