Members of the Equity Release Club will have access to the Marsden’s two-year discounted product which lends to those already in retirement, where income is guaranteed and proven.
The mortgage is available at two loan-to-value (LTV) levels; at 2.99% up to 40% LTV on an interest-only basis, and 2.79% up to 60% LTV on a repayment basis. The discounted rate is available until 31 January 2019 with a £299 booking fee and £299 arrangement fee and an early repayment charge applicable during the period.
Eligibility for the mortgage requires customers to be over 55 years old up to a maximum of 85 by the end of the term, and must be in receipt of pension income. While employment income is not considered, the Marsden said it will accept income from property and investments as evidence if accompanied by SA302s or an annual investment statement.
The minimum property value on the mortgage is £200,000 and is available for purchases, remortgages or unencumbered properties.
Last month, the Marsden announced its first lending range to help homeowners in retirement, with the building society saying it expected more lenders to follow suit.
Stuart Wilson, managing partner of the Equity Release Club, said retirement lending had been pushed up the agenda since the fall out of the Mortgage Market Review, as lenders tightened criteria and affordability, meaning many older borrowers were no longer eligible for a mortgage.
“We are now seeing certain forward-thinking lenders realise the market gap here and tailoring their offerings to those with known and provable retirement income,” he said.
“We firmly believe our members will have many clients in this predicament and therefore these lending to the retired mortgage products should find a willing audience. Overall, this is part of a big development push by the Equity Release Club to understand a more diverse borrowing demand from consumers and to work with members and provider partners to identify products specifically for older clients.”
