The Vernon Building Society has changed the lending policy on its retirement mortgage, removing the equity release qualification stipulation for brokers in line with the FCA’s aim of improving access to borrowing for older consumers.
Previously the North-West based building society required mortgage brokers to hold the equity release qualification – CeRER – in order to arrange its retirement mortgage for their clients.
However, it has updated this policy following the FCA’s decision to redefine retirement interest-only mortgages as standard mortgages not lifetime products.
Tom Gurrie (pictured), head of intermediary sales at Vernon, said: “Our retirement mortgage has proved popular with brokers and their clients, and following the FCA’s reclassification, we no longer need to restrict it to advisers with an equity release qualification.
“The mortgage provides a cost-effective solution to interest-only borrowers who require an extended term or an alternative to lifetime mortgages for those borrowers with adequate income to make monthly interest-only repayments.”
The Vernon Building Society retirement mortgage is available with or without a Lasting Power of Attorney in place, to borrowers aged 55 and over. There is no limit on the term as the mortgage is repaid on death or sale of property, and there is no interest roll-up.