Vernon Building Society has broadened its later-life mortgage range, introducing new options for borrowers aged 55 and over across England and Wales who are either retired or approaching retirement.
The refreshed range is designed to meet the differing needs of older borrowers through three product categories — Into Retirement, In Retirement and Retirement Interest-Only (RIO) — with flexible criteria to accommodate income from pensions, investments and other assets, even when funds are drawn down gradually.
The Into Retirement range has no maximum age limit and includes a five-year fixed rate at 4.74% with a £999 fee and free valuation, and a two-year discount at 4.65% with a £499 fee. Both allow overpayments of up to 25% without penalty.
The In Retirement range also carries no upper age limit, with a five-year fixed at 4.74% and a lifetime discount at 4.89%. Both include a free valuation, while the latter has no early repayment charges.
The society’s RIO products now offer up to 60% loan-to-value, including a five-year fixed at 5.09% with no fee, and a two-year discount at 4.99% with a £499 fee. A lifetime discount at 5.09% is also available, with no early repayment charges.
Vernon said demand for its RIO range has risen sharply, with completions up 158% between January and May this year compared with the same period in 2024. The society attributed the increase to more retirees using mortgages to buy homes or release equity to fund retirement plans.
Under RIO terms, borrowers continue to pay interest until the loan is repaid, typically when the property is sold following a move into long-term care or after death.
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.”
