MEDIA RELEASE MONDAY 11 MARCH 2019
BEVERLEY BUILDING SOCIETY ENTERS RETIREMENT INTEREST ONLY (RIO) MORTGAGE MARKET
Beverley Building Society is today pleased to announce the launch of its retirement interest only (RIO) mortgage, a competitive package for older borrowers looking for mortgage terms with no maximum age or loan term.
The Beverley’s Head of Lending, Graham Carter, said: “RIO is a natural extension to our existing later life lending offering, which is proving to be very popular given current market demand from older borrowers.
Since the introduction of the new pension freedoms, we think our RIO mortgage offers people an affordable way of unlocking some equity from their home without interest rolling up and increasing the capital debt over the term of the loan.
It’s a cost-effective way of accessing cash which can be used to either top up retirement income, gift a deposit to a younger family member as part of their legacy planning, raise capital for a specific purchase or simply having a nest egg of cash for that rainy day.”
The Beverley’s discounted mortgage rate is available to anyone over the age of 55 and in receipt of pension income. The offer is a 3 year discounted variable interest rate of 2.99% representing 2.00% off the Society’s Standard Variable Rate, which is currently 4.99%.
The product fee is £495 for applicants with a Lasting Power of Attorney in place, or £795 for those without.
Other product details are as follows:
- Available for loans of up to 55% of the property value
- Minimum loan £25,000 (purchase) or £40,000 (remortgage)
- Maximum loan £350,000
- Minimum property value £125,000
- Available up to 3.5 times income (both single and joint)
- No upper age limit or maximum term
- Pension and other forms of non-salaried income accepted
- Free legal fee and valuation fee on all remortgages, when using the Society’s panel of professionals.
For further information, or to arrange interviews, please contact Tracy Fletcher of By Tracy Fletcher Ltd PR via tracy@bytracyfletcher.com or 07983 633385
NOTES FOR EDITORS
About Beverley Building Society
Beverley is the only independent building society in East Yorkshire. We have been supporting our community since 1866.
As a true independent, we are committed to living mutuality by building better futures for our members, new and existing borrowers and savers, our people, our community and our sector at large.
In an age where the financial services market is moving at pace towards automated solutions, we believe there is still a place for people-centred financial services organisations like the Beverley, which are passionate about maintaining that personal touch.
Retirement Interest Only
RIO mortgages are taken on an interest-only payment basis with an open-ended mortgage term where the repayment vehicle is typically sale of property on the occurrence of one or more of the specified life events such as the death of either or both borrowers.
RIO mortgages are designed to increase the borrowing options available to older borrowers. The regulators relaxed their rules for these types of mortgages so that lenders can offer terms previously not possible.
A RIO mortgage is defined by the Financial Conduct Authority as one where:
- It is not an interest roll-up mortgage;
- Entry is restricted to older borrowers above a specified age; and
- The lender is not entitled to seek full repayment of the loan until the occurrence of one or more specified life events, unless the customer breaches their contractual obligations (including any obligation to pay interest during the term) in a way which allows the lender to terminate the agreement.