Positive Lending launches Shawbrook’s 55 Plus mortgage

The product provides an interest-only solution for customers, aged 55 or over, who are either looking to extend their mortgage term or raise capital.

It allows borrowers to extend their interest-only loan by remortgaging to Shawbrook over a term of five to 15 years.

The range was initially launched with sole distributor Key Retirement but saw packager The Loan Partnership come on board in April.

The Financial Conduct Authority estimates 600,000 interest-only borrowers will see their mortgages mature before 2020.

Positive Lending director of mortgages Stephanie Charman (pictured) said: “We are delighted to be one of Shawbrook’s chosen specialist packagers for their inventive 55 Plus product. With a growing ageing population and statistics showing there are 600,000 interest only mortgages due to mature before 2020, interim solutions for customers which fill the gap before equity release are needed.”

The 55 Plus range features rates starting from 5.25% with a choice of variable and fixed rates. The maximum loan-to-value is 50%, however features are set to evolve over time.

The product comes without early repayment charges and borrowers will have the ability to overpay free of charge. Borrowers must have a clean credit profile.

Shawbrook managing director for residential mortgages Maeve Ward added: “We are thrilled to be working with Positive Lending to offer peace of mind to customers aged over 55 facing the impossible situation of either having to sell their home or use their hard earned savings to settle an outstanding balance from their existing interest-only mortgage.”