The Nationwide Building Society has launched a new range of three later life mortgage products, as well as offering dedicated advice for those aged 55 and above.
It is aimed at addressing the needs of an ageing population by bridging the gap in the market for later life borrowing options, enabling them to live their retirement of choice. These will be accessed directly through Nationwide via a team of specialist later life mortgage consultants.
According to recent Nationwide research commissioned to examine the issues facing those approaching retirement, those in middle age have an average of £125,350 equity currently in their home.
Applicants must be Nationwide mortgage members over 55, both if joint, and can apply up to age 85. There are no product, valuation or advice fees, and borrowing can be for a number of reasons including home maintenance and improvements, gifting to family members, holidays and debt consolidation.
Alongside Nationwide’s standard mortgage lending options, the society will offer three later life lending options. These are a Retirement Capital and Interest product (RC&I), a Retirement Interest Only (RIO) product and a Nationwide Lifetime Mortgage for older borrowers. Accessed with the help of specialist Nationwide later life mortgage consultants, the advice process allows for a simultaneous eligibility assessment on the suite of products.
Initially the products will only be available to existing Nationwide mortgage members, but the plans are to roll out the later life mortgage products more widely by Summer 2019.
Rates for Retirement Capital and Interest (RC&I) mortgages are in line with the core Nationwide rates and start at 1.89%. The lifetime mortgage offers fixed rate products and these start at 3.49%.
Jason Hurwood, Nationwide’s director of home propositions, said: “We have seen growing demand from people wishing to release the value tied up in their home, particularly to support them being able to live the retirement they want to live.
“The Nationwide later life lending options that are now available through our dedicated mortgage advisers mean we are the first major high street lender to establish ourselves to support that growing demand. With the variety of options available when it comes to accessing the value that may be locked up in their homes, they need to be supported to take charge of their futures and find the right option for them and their particular circumstances.
“We have an ongoing plan to address the needs of a changing and ageing population, and to design products to support people in or approaching retirement.”