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Newbury Building Society Later Life Mortgage Rates & Details

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Compare Deals Retirement Mortgage Later Life Mortgage

Later Life Mortgage

  • Type Fixed
  • Rate 2.69%
  • APR 3.60%
Incentives:
  • Free Valuation
  • Legal Fees Contribution
Offers:
  • 5-Yr Fixed Interest Rate
  • Interest-Only or Capital & Interest Basis
  • 5-Yr Early Repayment Charges
  • 20% Overpayments Allowed
  • Maximum LTV - 75%*

Background

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 also led to Newbury launching their Retirement Interest Only Mortgage (RIO).

Later Life Residential mortgages can either be arranged on interest-only or capital and repayment basis, but must come with a fixed end date. They are available to older homeowners who have the means to meet monthly payments over a fixed term and repay the mortgage using a suitable repayment strategy.

Eligibility

Newbury Building Society’s Residential mortgage range is available from age 21 to anyone with permanent rights to residency and employment in the UK. For retirees with sufficient pension and other retirement income, a maximum age of 90 at the end of the mortgage term is acceptable.

Joint applications are also acceptable, subject to both applicants meeting age and income criteria.

These mortgages are available for both purchase and remortgage of a borrower’s main residence. Capital raising for property and non-property related purposes is permitted.

The Society will undertake a full analysis of income and expenditure to determine affordability of the mortgage payments.

The minimum property valuation is £125,000, with no minimum equity requirement. The property must be the homeowner's main residence and must be located within England and Wales.

Newbury Building Society will not accept adverse credit such as arrears, defaults and CCJ’s. Homeowners must have a clear credit history to apply. Please contact the Equity Release Supermarket team on Freephone - 0800 802 1051 to check for eligibility.

Features

These Newbury Later Life mortgages provide an initial tax-free lump sum cash release for immediate use. You will be required to make mortgage payments for the term of the mortgage which will consist of either interest-only or capital & interest payments.

The maximum loan-to-value (LTV) is 70% of the property valuation for interest-only mortgages and 75% maximum LTV for capital & interest plans.

The newbury operate a minimum loan of 50,000 and the maximum loan size being £1 million.

The ability to maintain monthly mortgage payments may be affected if income reduces, outgoings increase or interest rates rise. This means the homeowner could put their home at risk if they fail to keep up with payments.

The minimum mortgage term is 5 years and the maximum is 35 years, dependent upon the age at inception of the homeowner(s).

Tapered early repayment charges (ERCs) apply for the 5 years of the fixed product term, starting at 5% in year 1 reducing to 1% in year 5.

This is a residential mortgage which means that there are no safeguards if something unexpected arises which prevents the homeowner being able to continue making payments. So, to make use of this product, homeowners must be confident that their income will stay sufficient and constant enough to meet their payment obligations.

The homeowner must make all monthly interest &/or capital repayments as they fall due until the mortgage terms ends. This means that the homeowner could put their home at risk if they do not keep up with payments on this mortgage.

If a single applicant passes away before the end of the term, the mortgage will still have to be repaid, usually by sale of the property. On joint applications, the mortgage will continue in the name of the survivor, with payments still being mandatory.

The Newbury Building Society aren't members of the Equity Release Council and consequently their plans don’t have the code of conduct applicable like other equity release schemes such as the No Negative Equity Guarantee.

Options

In addition to the monthly interest only payment, the Newbury Building Society will permit an extra 20% capital repayment each year with no penalty.

The mortgage is portable and can be transferred to a new property, subject to acceptance and property criteria.

Once the discounted interest rate period ends the mortgage will revert to the Newbury’s standard variable rate (SVR), unless another product is selected before or at expiry.

The Newbury Later Life mortgage usually has fixed and discounted rates within its product range. However they are subject to change, hence contact the Equity Release Supermarket team on Freephone 0800 802 1051 for all the latest interest rates on offer.

Practicalities

This Newbury Residential Later Life mortgage enables homeowner(s) to spend their tax-free cash as they wish, but unlike roll-up equity release schemes also have the ability to make monthly interest-only &/or or capital repayments to control the future balance.

Newbury will accept applications which are based on retirees house purchasing, remortgage business and on unencumbered properties.

Once a specific deal ends, it will revert to the lenders standard variable rate, unless another deal is selected before or at expiry.

*the rate quoted above offers a 2.69% fixed rate until 30th July 2024
**free valuation available on properties valued upto £1 million
***free legals fees for remortgage customers

To obtain further information, or to request a quotation on the Newbury - Residential Later Life Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 802 1051.

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