Shawbrook Bank is offering borrowers aged 55 and over a new interest-only mortgage solution to allow them to stay in their homes for longer, while leaving their pension pots in place.
Targeted at borrowers whose current interest-only deal is coming to an end, Shawbrook says that its new mortgage product may also be used to raise funds for purposes such as landscaping a garden, home improvements or helping a family member onto the property ladder.
The product will also allow borrowers the flexibility to make additional penalty-free payments to their mortgage or to repay the mortgage in full at any time. In this case a discharge fee of £120 applies in England and Wales, and £180 in Scotland.
The deal is available on mortgages from £25,000 to £1 million (including fees) at five to 15-year variable rates from 5.25%, as well as three- and five-year fixed rates from 5.50%.
Shawbrook’s new mortgage deal will be available via brokers initially through Key Retirement Solutions.
Maeve Ward, managing director of residential mortgages, Shawbrook Bank said:
“For many, the prospect of selling a cherished family home when an interest-only deal is coming to an end is an emotional wrench, especially when the ability to continue paying a mortgage remains. We are thrilled to offer a lifeline to this underserved sector with Shawbrook’s new ’55 Plus Interest-Only Mortgage.”
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