Mortgages
Mortgage launched for over 65s
Legal & General and Buckinghamshire Building Society have launched a retirement mortgage for asset-rich over 65s, the only one of its kind in the market.
Created by the financial services company Legal & General and the Buckinghamshire Building Society, it will be interest-only or capital repayments for up to 50% of the property value where a credible repayment strategy is in place.
The maximum loan size is £350k while the remaining equity after the proposed loan must be at least £150k.
Sally O’Neill, a mortgage lending analyst at the company, said that it was a niche product likely to appeal to those wishing to raise funds.
“It is not really equity release – it is more remortgaging, perhaps for something like home improvements.”
Commenting on the joint-initiative, Ivan Gould, chief executive of the Buckinghamshire Building Society said that the society was “delighted” to be working with Legal and General.
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“The products we are offering will enable the Bucks to expand by fulfilling a valuable role in the housing market whilst maintaining our focus on security and safety for our members.”