The new products are aimed at teachers and others working within education who are nearing retirement or who have already retired.
The Teachers Later Years Home Purchase Mortgage is a 1% discount for two years off Teachers’ 4.99% Standard Variable Rate, giving a pay rate of 3.99%. It comes with an £899 arrangement fee and a £99 application fee.
The deal is available up to 75% loan-to-value (LTV) for working applicants and 50% LTV for retired applicants.
Applicants for the Home Purchase Mortgage must have a minimum income of £13,000 a year (from the teacher’s pension scheme). The maximum age at the time of application is 70 and the maximum age at the end of the mortgage term is 83 years old.
The Teachers Later Years Remortgage offers a 0.67% discount for two years off Teachers’ 4.99% Standard Variable Rate, giving a pay rate of 4.32%.
The deal, which comes with no fees, is also available up to 75% loan-to-value (LTV) for working applicants and 50% LTV for retired applicants, the maximum age at the time of application is 70 and the maximum age at the end of the mortgage term is 83 years old.
James Bawa, chief executive of Teachers Building Society (pictured), said:
“Teachers Building Society is committed to providing products that serve the needs of teachers including those whose mortgage term continues into their retirement and those already retired. In a mortgage market where many lenders are unwilling to lend to people into retirement we are pleased to be able to meet this increasing need.
“The Society has carefully considered customer outcomes and based our decision to launch these mortgages on statistics, including Office for National Statistics data and research among teachers in England and Wales.”
Colin Dorman, national account manager for Teachers Building Society, said:
“Feedback from intermediaries regularly mentions the fact that lenders need to cater for older borrowers as part of the lifecycle of financial needs. Our measured approach is a welcome addition to our new and exciting line up of products.”
The mortgages are initially only available via intermediaries, but the lender plans to start offering them direct to consumers in the next few weeks.