The Saffron Building Society’s latest addition to its Retirement Interest Only (RIO) mortgage products includes new fixed rates options, reduced rates on existing RIO mortgages and lower fees across the RIO range.
The rates are as follows:
- 3.14% three-year discount RIO mortgage
- 3.44% three-year discount RIO mortgage
- 3.37% fixed until 31/01/2023 RIO mortgage
- 3.67% fixed until 31/01/2023 RIO mortgage
Key Features:
3.14% ((SVR-2.5%) to 50% LTV – requires a Power of Attorney (POA) to be in place for applicant
3.44% (SVR-2.2%) to 50% LTV
Arrangement fee: £499
Early Repayment Fee: 3% for 3 years
Overpayments: 20% penalty free per annum
Loan: Min loan £30K, Max loan £1M
Repayment: Interest only
Purpose: Purchase or re-mortgage
3.37% to 50% LTV – requires a Power of Attorney (POA) to be in place for applicant
3.67% to 50% LTV
Arrangement fee: £999
Early Repayment Fee: 3% for 3 years
Overpayments: 20% penalty free per annum
Loan: Min loan £30K, Max loan £1M
Repayment: Interest only
Purpose: Purchase or re-mortgage
The Saffron claimed its RIO products will appeal to different market segments depending on their needs:
- The mortgage allows borrowers to protect the equity in their home and/or release equity to support their lifestyle such as looking after family members, residential care or home improvements.
- People with an interest only mortgage, who have a repayment vehicle in place, can choose to use their capital for other purposes.
- Borrowers with an interest only mortgage, who do not have a repayment vehicle, can use this product to stay in their property for longer.
Anita Arch, head of mortgage sales at the Saffron Building Society, said: “We continually review the market to see where new opportunities are emerging for our broker partners. The retirement sector is definitely one area to keep an eye on in terms of new selling opportunities – as such we have redefined our RIO mortgage range to accommodate the increasing demand in this specialist area.
“Many consumers don’t think it’s possible to obtain a mortgage in retirement let alone get one that can help fund a lifestyle. People are living longer and are expecting to maintain a certain standard of living during this time. One of the key benefits associated with our RIO products is the opportunity for customers to utilise the capital linked to homeownership providing a popular way for them to finance living in later life.
“We will be pleased to speak with our broker partners to outline in more detail the growth opportunities in the retirement mortgage market.”