A new 'Retirement Mortgage' for the over 50s

The Buckinghamshire Building Society has launched a new mortgage aimed at borrowers aged 50 and over who have an interest only mortgage but do not wish to sell their property when their current mortgage term expires. 

The Retirement Planning Mortgage has no maximum age and will allow customers to borrow up to 70% of the property value, 40% of which can be on an interest only basis.

Interest rates are calculated based on the borrower’s individual circumstances but are variable in all cases and start from 5.24%.  A minimum property value of £300,000 applies and this product is only available through a handful of distributors, including AToM.   Terms and conditions apply.

We’re hearing that a number of lenders are struggling to get enough qualified mortgage advisers into their branches in time for MMR (Mortgage Market Review) which comes in to effect on 26^th April.  This means that with such shortages on advisers, some borrowers are having to wait as long as a month to see an in-house mortgage adviser.  Remember that ‘whole of market’ mortgage brokerages could possibly offer these lenders products, and quickly, so review your options.
The number of house purchase loans shot up by 33% on an annual basis in February, according to the Council of Mortgage Lenders.  The value of purchase loans in February reached £7.8bn, an increase of 47% from the same time in 2013.   A total of £3.5bn was advanced to remortgage borrowers in the month, up 29.6% from a year earlier.

Finally, The Newcastle Building Society has launched two new 95% loan to value products with no reservation or booking fees.  With rates starting from 5.39% (and a five year fixed at 5.49%), they will not set the world alight, but do present another option to a consumer needing a manual assessment, rather than a tick box high street lender.  At the same time the Mansfield Building society has reduced its 95% loan to value products by 0.5% down to 4.49% but only for those who live in their designated postcode areas.  Slightly restrictive lending!

Have a great Easter break!