The Nottingham for Intermediaries has introduced three Retirement Interest Only (RIO) mortgage products.
They include seven-year fixed rate at 3.85%, three-year fixed rate at 3.34% and two-year discount product at 2.99%, all with a £995 fee, free valuation and 40% loan to value (LTV) limit.
RIO mortgages offer customers in later life the chance to release funds, giving them more options for financial planning or enhancing their retirement lifestyle.
They are available for both purchases and remortgaging.
Nikki Warren-Dean, head of intermediary sales for The Nottingham for Intermediaries, said: “The addition of RIO mortgages to our portfolio adds choice for people in, or heading towards, retirement.
“Our research shows many people want to use their money to enjoy their retirement rather than having large amounts of capital tied up in their property.
“This comes hot on the heels of our announcement last month to raise the maximum lending amount for 95% LTV mortgages from £275,000 to £500,000 – further highlighting our desire to be there for our customer’s mortgage needs whether it’s their first or last house.
“RIO mortgages are provided exclusively via our broker network so we have every confidence they will be supplied with expert advice and support to ensure it’s the right fit for the customer.”
Danny Belton, head of lender relationships at Legal and General Mortgage Club, added: “The building society sector is playing a major role in helping both the first time buyer and the older borrower.
“It’s great to see The Nottingham recognise the need for improved criteria and innovation for older borrowers with their new RIO mortgage range. As their research suggests, many customers will look to raise funds to help them enjoy their retirement.”
Skipton International UK BTL mortgages available to foreign nationals
Skipton International has extended its UK buy-to-let (BTL) mortgage proposition to include applications from non-UK nationals resident overseas.
Previously the offshore lender only offered UK buy-to-let mortgages to British expatriates.
This news follows the decision to expand Skipton International’s investment property lending criteria over the last year.
Skipton International increased the areas in which it will offer borrowing to include Scottish property and can offer lending on studio apartments with a purchase price of £250,000 or higher.
Roger Hughes, business development manager, said: “We have been continually refining our UK buy-to-let offering and will continue to search out ways in which we can make our products more readily available and inclusive.”
He added that Skipton would continue to grow its expat mortgage business.
Hanley Economic BS launches 1.84% no fee two-year BTL fix
Hanley Economic Building Society has launched a no fee two-year fixed rate buy-to-let product at 60% LTV with a headline rate of 1.84%.
The product is available for purchase or on a remortgage basis. There are no application or product fees and the minimum loan amount is £30,000, with a maximum of £500,000.
Overpayments of up to ten per cent of the mortgage balance are permitted each Society year until 30 April 2021 and may be made by monthly standing order.
Any additional overpayments above ten per cent during this period will incur a penalty calculated on the amount of the additional payment.
If the mortgage is repaid in full before 30 April 2021 an early repayment charge will apply. This will be two per cent of the balance repaid during this period.
Each case will be assessed on an individual basis by the in-house underwriting team, meaning no credit scoring, and both products are available through the Hanley Economic BS branch network and selected intermediary channels.
David Lownds, head of marketing and business development at Hanley Economic BS (pictured), said that despite facing some challenging times, the BTL sector remains a competitive, innovative and robust sector of the mortgage market.
He said: “Landlords, investors and intermediaries need all the support they can get during the current political and economic climate, and we feel this product will provide a strong option for those looking to purchase and/or remortgage existing properties.”
Kensington Mortgages cuts residential rates
Kensington Mortgages has cut rates up to 0.25% on two and three-year residential products, up to 85% LTV.
On Kensington’s Select and Young Professionals range, rates now start from 2.89% on a two-year fix at 75% LTV, a reduction of 0.25%.
Similarly, three-year fixes now start at 3.19% on 75% LTV and 3.34% on 80% LTV, a reduction of 0.15%.
There have also been reductions of up to 0.2% on Select products at 85% LTV. This leaves the current rate for a two-year fixed product at 3.39% and, after a 0.1% reduction, at 3.69% for the three-year fixed product.
These latest rate cuts follow the announcement of a large loan product by Kensington Mortgages and the recent news that the company has renewed its £900m warehouse facility, with funding from BNP Paribas and Citibank.