Equity Release Club and AIR Sourcing have announced a new relationship with Shawbrook Bank.

The Equity Release Club has been chosen as one of Shawbrook’s restricted panel distributors and Platinum member firms will, following attendance of a Masterclass session and having passed an online test, be able to advise on Shawbrook’s recently launched 55 Plus Interest-Only Mortgage.

Full product information on the 55 Plus Interest-Only Mortgage is now available on the AIR Sourcing portal. The product is suitable to those over-55s who are currently nearing the end of their existing interest-only mortgage and have a shortfall to pay. It comes with the following key criteria:

• Borrowers must be aged between 55-75 years old.
• Mortgages of between £25,000 and £1m (inclusive of fees) are available up to a LTV of 50%.
• Currently five to 15-year variable rates are available from 5.25%; and three and five-year fixed rates from 5.5%.
• The maximum age of the borrower at expiry of the loan is 85 years old.
• The minimum income of the main earner is £16.5,000; minimum property value £225,000.
• Overpayments are allowed at any time without charge; the loan can be paid in full at any time – the borrower need only pay the discharge fee of £120 in England and Wales, and £180 in Scotland.

This new product allows borrowers to stay in their own homes for up to an additional 15 years, plus it allows them to keep their savings rather than using them to pay off their existing shortfall. It also means borrowers can raise additional funds via the Shawbrook mortgage for a variety of purposes.

AIR Sourcing was launched in May 2016. Since its launch the system has grown to 1,600 registered users conducting over 2,300 sourcing sessions each month.

AIR Sourcing is available to registered advisers free of charge and offers products with enhanced terms for members of the Equity Release Club and Later Life Academy.

Maeve Ward, managing director, residential mortgages at Shawbrook Bank, said: “I am delighted that the Equity Release Club has agreed to partner with Shawbrook Bank as one of our preferred partners on our new 55 Plus Interest-Only Mortgage product.

“Having been kindly invited to their Later Life Academy lending events I have been so impressed with the quality of the advisers and their appetite to explore new opportunities to assist with alternative customer outcomes.”