The Beverley Building Society has reduced the rates on its interest-only mortgages by up to 0.50 percentage points.
New rates are as follows:
| Products | New rates | Other product criteria |
| 2-year discounted rate | 2.19% (was 2.43%) | Up to 65% LTV, reverts to the Society’s SVR (currently 4.99%) after the product term. |
| 3-year discounted rate | 2.49% (was 2.99%) | Up to 65% LTV, reverts to the Society’s SVR (currently 4.99%) after the product term. |
Graham Carter, the Beverley’s head of lending, said the Society is responding to a growing need for this type of lending, particularly amongst borrowers over the age of 50 who are reviewing the role their properties play in their retirement planning.
He said: “Interest-only, and in particular retirement interest-only, are some of our fastest growing areas of lending, and we’re seeing increased demand particularly among people over the age of 50 who are looking to unlock the capital in their homes to support their lifestyle choices both approaching and in retirement.
“The new pensions freedoms and increasing life expectancy are certainly changing how people manage their various assets and we are providing an increasing number of interest-only loans to these sorts of customers to enable them to carry out essential home improvements, go on holidays-of-a-lifetime, gift deposits to help younger family members onto the housing ladder or simply ease their outgoings to so that they can remain in their own homes while living the lifestyle they want in older age.”
In addition to these standard interest-only products, the Beverley offers a retirement interest-only (RIO) option, depending on customers’ individual circumstances. The Society has no upper age limit on its mortgages.