This includes Into Retirement, In Retirement and retirement interest-only (RIO) products to suit various income streams, such as existing assets and pension provisions on a drawdown basis.
The Into Retirement range has no maximum age criteria and includes a five-year fix priced at 4.74% with a £999 fee and free valuation. There is also a two-year discount product priced at 4.65% with a £499 fee, allowing 25% overpayments without penalty.
The In Retirement products also have no maximum age criteria. The range offers a five-year fix with a rate of 4.74%, a £999 fee and free valuation, as well as a lifetime discount option at 4.89% with a £499 fee, free valuation and no early repayment charges (ERCs).
The RIO goes up to 60% loan to value (LTV), including a five-year fix at 5.09% with no fee and free valuation. There is also a two-year discount at 4.99% with a £499 fee, free valuation and 25% overpayment with no ERCs. Further, there is a lifetime discount product at 5.09% with a £499 fee, free valuation and no ERCs.
Vernon Building Society said it had seen a 158% increase in demand for its RIO mortgages from January to May this year, compared to last year.
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Brendan Crowshaw (pictured), head of mortgage and savings distribution at Vernon Building Society, said: “In later life, borrowers can still be in a state of flux when it comes to income streams and how they’d like to use their money, so our enhanced Later Life portfolio will offer a flexible, easy and more personalised approach to mortgages.
“Every case we receive is personally underwritten, ensuring clients’ individual circumstances are understood. We recognise that later life lending isn’t one-size-fits-all. Whether clients are managing pensions, downsizing, supporting family, or unlocking equity for lifestyle needs, our products are designed to adapt to their evolving goals.”
