The Newbury Building Society was established in 1856 under the name of The Newbury Permanent Benefit Building and Investment Society. It was set up to be an independent, mutual society which helped serve the community in providing mortgages and savings. Since 2017, the Society has now recorded assets of over £1 billion and being a mutual organisation is owned by its members in order to create long-term value.
Newbury offers a range of mortgage products to cater for a wide variety of customers and their individual needs. They provide residential mortgages to a range of applicant ages, but in particular to later life homeowner(s) who still have the capacity to repay a mortgage upto age 90. This rationale has led to Newbury launching their Retirement Interest Only Mortgage (RIO) on a lifetime mortgage basis.
RIO mortgages are interest only mortgages with no fixed end date. They are available to older consumers and designed so that homeowners can use the sale of their home to repay their mortgage balance, which will be either upon death, or the last surviving partner moving into care.
Unlike an equity release lifetime mortgage, interest roll-up is not permitted on the Newbury RIO mortgage and the homeowner will be required to make monthly mortgage payments for the life of the mortgage, which will consist only of interest on the amount borrowed.