Vernon Building Society launches new lifetime mortgages Vernon Building Society has launched lifetime interest only mortgages aimed at retired borrowers who are looking to release equity from their homes. Applicants can borrow a lump sum against the value of their homes and each month pay only the interest, usually from pension income. This means that the outstanding loan does not reduce, but instead is repaid from the sale of the property either when the borrower dies or moves into alternative accommodation.
Ian Keeling, Head of Sales and Marketing at the Vernon, said “We developed these products to meet a rising demand that we have experienced. High house prices have left many people asset rich, however they may not have much money saved to do the things they want to do. Selling and down-sizing is an option, however people are often settled in their homes and do not want to move as this can mean leaving networks of friends and family behind.”
Two new products have been launched, both with a five year discount from the Society’s standard variable mortgage rate for the first five years. Neither product has an arrangement fee or any early repayment charges, however one benefits from a higher initial discount and is available only to applicants that have registered a Lasting Power of Attorney (LPA).
“An LPA is a legal tool that allows you to appoint someone to make certain decisions on your behalf. The appointed person can manage your finances for you in the future if you reach a point where you are no longer able to make decisions for yourself” said Ian. For more information visit www.thevernon.co.uk, or call the Society on 0161 429 6262.
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