National Counties Building Society is now offering a mortgage targeted at borrowers approaching, or already in retirement, and looking to deal responsibly with their outstanding debt.
The eight-year fixed rate mortgage product, available for remortgage, is priced at 3.99% fixed until 28/02/2022.
It is available to people needing to borrow up to 60% of the value of their property and, while having a nine-year mortgage term, only has early repayment charges for the first five years.
The mortgage is available on a repayment basis only and calculates interest monthly.
The product available to customers up to the age of 80, and National Counties believes that this, allied with its personalised underwriting assessments, may allow existing homeowners to avoid trading-down.
Customers are able to withdraw equity from their existing main residence, with the reassurance of fixed monthly payments, and the structured repayment profile ensures that the initial debt is reduced steadily to zero over the 9 year term.
Keith Barber, associate director business development at National Counties Building Society, said: “There are more than 1.6 million retired people with an outstanding mortgage in the UK and a further 600,000 with interest-only mortgages that are due to mature. We are trying to address this area with a mortgage that enables people to put in place a structured and affordable repayment plan with the comfort of known monthly repayments.
“We take our lending responsibilities seriously and our experienced underwriters individually assess each application. This approach enables us to look at each case on its merits. We are committed to offering solutions which will support existing homeowners at a time when family finances are under pressure.”
