The Financial Conduct Authority (FCA) has recently reviewed later life lending and introduced proposals to improve access to mortgage borrowing for older people.
So far, Hodge Lifetime, Leeds Building Society and Scottish Building Society have launched into the retirement interest-only (RIO) market.
Tim Vigeon, head of lending at Buckinghamshire Building Society (pictured), said: “We welcome the work conducted by the FCA acknowledging the changing demographic and financial needs of the UK population.
“We expect our RIO mortgage to be popular with older borrowers with interest-only mortgages approaching the end of their term. Choosing a mortgage product is always a highly personal decision as individual circumstances and priorities are different and by offering RIO exclusively through Legal & General we are confident that customers will receive the appropriate advice that they need to make the right decision.
“In applying for these loans affordability is essential through the term of the loan with the mortgage being repaid on a specified life event which can include the sale of the property or moving into care. We also recognise the value of having a Lasting Power of Attorney (LPA) and to support this option we offer a reduced rate to those who have one in place.”
Head of lender relationships at Legal & General Mortgage Club Danny Belton added: “The later life market continues to evolve to meet the needs of the older generation, and once again it is a regional building society that is delivering some good options for these customers.
“I am delighted that the Buckinghamshire BS has decided to work with the Legal & General Mortgage Club on its RIO proposition, and provide these products exclusively to our members.”
