Ipswich Building Society have launched a new Retirement Mortgage Programme.
The 166 year old Ipswich Building Society have launched a new Retirement Mortgage Programme, and as part of their Mortgage Misfits campaign have released statistics showing that 1 in 5 people still expect to be paying off their mortgage into their retirement.
The Retirement Mortgage Programme offers a suite of mortgage products to people in retirement and to borrowers up to the age of 85 at the time the mortgage is due to finish.
In addition to this, all the Ipswich Building Society residential mortgage products will accept 100% of mortgagee’s pension, as well as other suitable income sources, including investments, when making an affordability decision.
Following the recent Mortgage Market Review (MMR) which increased the pressure on mortgage providers to use stricter mortgage eligibility requirements, it has been noted that some lenders have restricted mortgage lending to borrowers over the age of 65.
According to Ipswich Building Society, this has led to people aged in their mid-forties and older being restricted in their ability to take out certain mortgage products.
Our research has shown the availability of mortgage products is an issue of concern to all age groups, not just those approaching retirement. Sadly many of the high street lenders have decided to interpret the recent mortgage regulation as a reason to restrict borrowing to older and retired borrowers, adopting a ‘computer says no’ approach to applicants. I don’t believe MMR was ever meant to be used in this way.
Paul Winter, Chief Executive at Ipswich Building Society
Data from research conducted by the society also showed that a third of people in the UK (33%) were concerned about the availability of mortgage products when they are older, and 35% of people worry that they will likely have to pay a higher mortgage rate in the future because of their age.
The video below shows how IBS were able to help a borrower who were locked out deals by existing lender:
Retirement Mortgage Programme: The Key Features
The following are the key features of the Retirement Mortgage Programme from Ipswich Building Society:
- Ipswich Building Society’s lending criteria will still apply
- Borrowers must have sufficiently good credit histories
- Applicants can apply to the full range of standard mortgage products, up to 75% LTV (Loan-to-Value)
- Up to 100% of a mortgagees pension and additional investments can be considered when considering eligibility
FAQs
Does Ipswich Building Society offer mortgages for over 60s & pensioners?
Yes, Ipswich Building Society will consider applications from potential borrowers who will be up to the age of 85 at the time the mortgage will end.
Is there a specific retirement mortgage product?
No, IBS thought it would be better to provide everyone with the flexibility to apply for all the existing mortgage products.
Do I have to live in Suffolk to apply?
No, you can apply for a mortgage with IBS from anywhere in England and Wales, or via a range of mortgage intermediaries.
For more information on Ipswich Building Society’s Retirement Mortgage Programme visit: http://www.ibs.co.uk/olderborrowers
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