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The Melton has launched a new mortgage for borrowers aged 55 and over with an interest only mortgage. This product allows customers to remortgage on a part and part basis up to 75% LTV with a maximum 50% LTV interest only element. This product will allow borrowers to have repayment strategy options at the end of the term, including switching to a lifetime mortgage. The Melton considers lending up to a maximum age of 80 at the end of the mortgage term subject to affordability assessment. Minimum equity requirement for this product is £100k.
“Customers with interest only mortgages face having to sell their homes if they can’t repay their mortgage at the end of the term,” says Nicola Alvarez, Director of Sales & Marketing, the Melton Building Society. “There is currently a gap between standard mortgage offerings and equity release mortgages. This new product provides an affordable, sustainable solution for older borrowers to reduce their interest only balances.”