In support of the ever growing demand for later life lending, the Melton Building Society has launched a Retirement Interest Only (RIO) mortgage proposition. Offered through intermediaries, the new product is a 2.99% interest only discounted rate for term up to 50% LTV and is available to customers aged 65 and over. Income must be sustainable for the life of the mortgage and the Society will consider both earned income and pension income when assessing affordability. It comes with a £199 application fee and £199 completion fee and the Society requires a Lasting Power of Attorney to be registered.
There is no upper age limit or maximum term with this product. Borrowers make interest only payments on the loan up to the point of a significant life event at which time the proceeds of the sale of the property repay the loan. “Our new RIO proposition combines our natural strengths of flexible manual underwriting and a focus on customer needs,” said Dan Atkinson, Head of Sales & Marketing, the Melton. “This product enhances our overall later life lending proposition which lends up to a maximum age of 80 as standard, and recognises demand from older customers who either need a longer term solution to their standard interest only mortgage, or want to make the most of the equity they have built up in their homes, for example to help their children get on the property ladder or take the holiday of a lifetime.”
Brokers will find all the information they need about this new proposition in the RIO section of the Society’s website www.themeltonbrokers.co.uk which includes a RIO affordability calculator and step by step guide to the application process.
The Melton provides an online end to end mortgage processing system that enables brokers to register, obtain a DIP, submit an application, upload documents and track cases online – all in one easy to access place. They can also access current service levels, affordability calculators, product guide and lending criteria.