Aldermore have launched a fantastic lending in to later life proposition.
I’ve mentioned lending in to later life a number of times over the last few weeks. It’s a market that is heavily underserved and one that a number of lenders are looking to assist over the coming months. At the moment, it’s a product range only really offered by the smaller lenders who can think on a case by case basis and take all things in to consideration. However, just recently, some of the larger lenders are realising what a huge market this is and are taking action.
On the high street, some lenders will now consider applications from those over 55 and allow a term up to their 80th or 85thbirthdays. At this point, the mortgage must be repaid.
So credit to Aldermore, a ‘challenger bank’, who have looked at what is on offer, taken many considerations in to account and launched a true alternative to Equity Release in the form of a ‘Lending in to Later Life’ product.
The key highlights are that you can apply up to a maximum age of 85! They will allow a mortgage term up to your 99th birthday and they will consider Interest Only. They will also consider allowing retired borrowers to remortgage their interest only loan when it comes to an end, using the sale of their property as a means of repaying the debt.
In order to qualify for the interest only option, borrowers must have a minimum of 40% equity in their property and can choose from a range of two, three, five and ten year fixed rate deals. There is also a variable rate option and if on a repayment basis, the loan can be offered up to 75% of the property value, subject to terms and affordability.
This product will also allow home owners to release capital to help family members with deposits for new properties, release equity to help with future income requirements, pay existing debts, or help with inheritance tax planning, and so on.
Revised rules from the regulators will now allow retired individuals to use their home as repayment of interest only debt, which was restricted only a few years ago. Therefore, this great Aldermore launch could be the first of many to come… and with only four companies in the UK having access to its limited launch, AToM is delighted to be able to offer this product.