New retirement interest only mortgage launched by Mansfield Building Society
Mansfield Building Society have launched a new interest only mortgage for people in retirement.
Mansfield BS follow a number of UK lenders launching products into the later life lending market which offers homeowners the benefits of releasing equity without the downside of equity being impacted by rolled up compound interest.
Mansfield have launched two products – a 3 and a 5 year fixed rate product. Both have £199 application fees and an £800 completion fee. The 5-year deal also benefits from the fact that it does not have an early repayment charge. The two products are available to borrowers aged 55 plus.
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.”
Click here for more information on interest only mortgages