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.”
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
You may also be interested in:
What the Spring Budget 2017 means for landlords
Stamp Duty FAQs