The second-charge products have been launched in response to problems faced by borrowers in their 50s and 60s who are struggling to find a mortgage that will run beyond retirement age due to restrictive lending criteria. V Loans says these customers are being excluded from mainstream lending based on age rather than their ability to pay.
The second-charge deals are also aimed at retired applicants looking to borrow against the equity in their home.
Products include a buy-to-let second charge product with rates from 7.45% and a second-charge loan from 4.99% above base rate. Lending criteria has been designed to be flexible to the needs of older borrowers.
Both products are available exclusively through V Loans and to customers of parent company Key Retirement.
Marie Grundy, managing director of V Loans, said: “The secured lending market is growing strongly but it is important lenders continue to look at responsible lending solutions which can be offered to older borrowers, and our partnership with Shawbrook Bank is a major step forward.
“Currently there are limited choices for older creditworthy customers in the residential mortgage market and it is crucial that the financial services market continues to work hard to provide suitable lending products in response to this.”
Maeve Ward, sales and operations director at Shawbrook Bank, said the new range is to meet the needs of a demographic excluded from the residential lending market on the basis of age alone.
She said: “Our human underwriting and rigorous risk management approach ensures that each case is considered on an individual basis to ensure a good customer outcome. We believe that this part of the market is underserved and expect to see increasing demand.”
V Loans was acquired by KR Group in September 2014 and Key Secured Lending Ltd. V Loans operates as an appointed representative of Key Retirement Solutions.
