Saffron have launched a Lending into Retirement Mortgage for customers looking to downsize. With people living longer and needing to make their money go further, the product gives brokers the chance to cater to an expanding market.
Saffron’s new offering is interest only and is available to customers looking to borrow into their retirement. It lets customers use downsizing as their repayment vehicle, so they can repay the loan after they have retired.
Applicants need a minimum equity in their property of £250,000, although applications will be considered from customers with alternative assets, or in locations where other factors are relevant.
Anita Arch, Saffron Building Society’s head of mortgage sales, wants to dispel the myth it’s impossible for people to get mortgages as retirement approaches.
She said: “You may be approaching retirement and have seen a property you want to call home but lenders have already said no. We say, let’s talk further and see what we can do to help.
“Our Lending into Retirement Downsizing mortgage allows you to use downsizing as a way to pay off your loan after you stop working.”
Mansfield launches buy-to-let for expats
Mansfield Building Society has launched a new buy-to-let mortgage product, exclusively for expat borrowers.
The firm believes that, regardless of Brexit, there will continue to be property investment demand from UK nationals living overseas.
The new two-year discounted rate product is offered to 70 per cent LTV at a current rate of 3.69 per cent. Unlike the Mansfield’s other Expat buy-to-let product, the new one comes with no completion fee.
It is available to UK nationals, who have previously been owner-occupiers in the UK, with a minimum income of £40k or equivalent, although there are some restrictions depending on where expats are currently living.
The expat product comes hot on the heels of the Mansfield’s new Holiday Buy-to-Let product for borrowers seeking to purchase or remortgage a holiday property, which was launched last week.
The three-year discounted product is offered to 70% LTV at a current rate of 3.65% on properties with a minimum value of £150k and which qualify as a Furnished Let under HMRC rules.
Newbury launches shared ownership products
Newbury Building Society has launched two new shared ownership products – one fixed and one variable – for customers looking to take their first step onto the property ladder.
The three year fixed can be used for customers buying new build houses and flats. Customers will need a minimum 15 per cent deposit of the share they are buying. The product is application fee free.
Launching the products, Roger Knight, lending manager at Newbury, said the firm now offer nine purchase-only mortgage products for customers hoping to use the government’s part-rent-part-buy scheme.