To qualify for the downsizing option there must be a minimum equity of £150,000 which must be sufficient to provide a reasonable quality home in the property locality.
The product offers a rate of discounted rate of 3.19% for two years, up to 40% loan-to-value, an early repayment charge of 2% and is available for purchase or re-mortgage. It carries an application fee of £199 and a completion fee of £800.
Stuart Bryce (pictured), business development manager at the Mansfield, said it will be available exclusively through intermediaries because “it requires a full understanding of a client’s current and future circumstances, including their plans for later life, and professional advisers are well placed to provide this advice.”
He added: “I am confident that advisers will see this as an attractive option to meet the clear needs of an underserved segment of the mortgage market.”
Researched published by Bower Retirement Services in September showed that while advisers estimate between 20% to a third of clients are considering downsizing, around 70% said clients dropped plans to downsize due to family ties, not being able to find suitable homes or due to the high costs of moving.
Earlier this year the Bank of Scotland said in a report that less than one in 10 of over 50s had plans to downsize.