One of the regular enquiries for Independent Financial Advisers tends to be a re-mortgage later in life, as circumstances change. Here’s the word;
A broader range of Later Life mortgages has been launched by Vernon Building Society for borrowers in England and Wales aged 55 and above, who are either retired or retiring through the term of their mortgage. Covering the varying needs of the later life borrower, Into Retirement, In Retirement and Retirement Interest-Only (RIO) products can accommodate various income streams including existing assets and pension provisions on a draw down basis, even if they’re not currently being utilised.
Into Retirement, with no maximum age criteria, offers a 5-year fixed at 4.74% with £999 fee and free valuation and a 2-year discount at 4.65% with a £499 fee and 25% overpayment without charge.
In Retirement also has no maximum age criteria. There is a 5-year fixed at 4.74% with £999 fee and free valuation, as well as a lifetime discount at 4.89% with a £499 fee, free valuation and no early repayment charges.
Retirement Interest-Only has a new maximum LTV of 60%. The Vernon offers a 5-year fixed at 5.09% with no fee and free valuation. The 2-year discount at 4.99% with £499 fee and free valuation offers a 25% overpayment without charge. A lifetime discount at 5.09%, £499 fee, free valuation and no early repayment charge is also available.
Vernon Building Society has seen a 158% increase in its RIO mortgages from January to May 2025 compared to the same period last year, as the trend continues for retirees to purchase a home or release cash from the equity in their home. Borrowers will pay interest on the mortgage until it’s repaid, typically by using the proceeds of the property’s sale when they move into long-term care or pass away.
Brendan Crowshaw, Head of Mortgage and Savings Distribution at Vernon Building Society said: “In later life, borrowers can still be in a state of flux when it comes to income streams and how they’d like to use their money, so our enhanced Later Life portfolio will offer a flexible, easy and more personalised approach to mortgages.
“Every case we receive is personally underwritten, ensuring clients’ individual circumstances are understood. We recognise that later life lending isn’t one-size-fits-all. Whether clients are managing pensions, downsizing, supporting family, or unlocking equity for lifestyle needs, our products are designed to adapt to their evolving goals.”
To find out more visit www.thevernon.co.uk/intermediaries/products/later-life-mortgages
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