Newlife has launched the 65+Mortgage with a free standard remortgage legal package.
The product is available in England and Wales on either a capital and interest repayment or interest-only basis.
The firm says the deal is suitable for homeowners who want to take out a new mortgage or remortgage past age 65, but aren’t looking for a lifetime mortgage as they have sufficient income to make monthly payments.
The 65+ Mortgage package provided by Newlife (in conjunction with AToM) offers a rate of 5.74% (variable), with a maximum term of 25 years (extended term subject to approval).
There are early repayment charges of 3% of the original advance in the first year only.
There is individual assessment of all applications and income must be provable.
The maximum loan amount is £350,000 with the loan to value capped at 50% (including any fees added) and there must be £150,000 of borrower’s equity remaining in the property at completion.
It also includes a free standard remortgage legal package.
“An increasing number of people find they are still paying a mortgage at 65 and may still be working – at least part-time – but due to their age, they are unable to remortgage,” said Peter Lucas, chief executive of Newlife.
“At Newlife, we recognise this issue and have launched the 65+Mortgage package to help people in this situation. This product will allow borrowers to remortgage to a more competitive deal and increase the term of the mortgage thus reducing their monthly repayments.
“This product is one of very few, which will also allow other older homeowners who have the necessary income, to raise cash for whatever purpose they require through remortgaging or taking out a new mortgage.
“We are committed to continuing to expand and improve our offering and have today also announced a raft of enhancements to our lifetime mortgage product.”
The flexible lump sum lifetime mortgage product now offers:
- Free Application/Valuation Fee on properties worth up to £500,000, with a contribution of £525 for properties over this value
- Cashback Option available for a limited period
- Choice of interest rates, compounded monthly: 6.24% with cashback of 0.75% of the initial advance capped at £2,000 or 6.14% without cashback
- Arrangement Fee of £750 to be added in excess of the maximum LTV, if required
- Option to choose single or joint life basis
- Available in England, Wales or mainland Scotland