3-year discounted Rates:
3.34% (SVR-2.3%) to 50% LTV – requires a Power of Attorney (POA) to be in place for applicant
3.64% (SVR-2.0%) to 50% LTV
Arrangement fee: £999
Early Repayment Fee: 3% for 3 years
Overpayments: 20% penalty free per annum
Loan: Min loan £30K, Max loan £1M
Min Term: 5 Years
Max Term: None
Repayment: Interest only
Purpose: Purchase or re-mortgage
Who would it appeal to?
The new RIO product will appeal to different market segments depending on their needs:
The mortgage allows borrowers to protect the equity in their home and/or release equity to support their lifestyle such as looking after family members, residential care or home improvements.
People with an interest only mortgage, who have a repayment vehicle in place, can choose to use their capital for other purposes.
Borrowers with an interest only mortgage, who do not have a repayment vehicle, can use this product to stay in their property for longer.
In 1982, average life expectancy in the UK was 72 — just seven years beyond men’s default retirement age of 65, but things are changing. Now, life expectancy has risen to a level not seen in previous generations, people can choose when they leave the workforce and they have far more options on how to live their lives after full time employment. Saffron is developing products like RIO to fulfil shifting needs.
Anita Arch, Head of Mortgage Sales at Saffron Building Society said: “Many consumers don’t think it’s possible to obtain a mortgage in retirement let alone get one that can help fund a lifestyle. People are living longer and are expecting to maintain a certain standard of living during this time.
At Saffron, we don’t believe customers should be limited by ‘everyday’ products – we like to be flexible and are increasingly offering more options in the ‘specialist’ space to meet customer needs more appropriately. Our RIO product utilises the capital linked to homeownership and is becoming a popular way to finance living in later life. We look forward to reaching out to more and more brokers with this latest mortgage so they have a further option to offer to those in retirement.”