Vernon BS launches offset retirement interest-only range

The offset products allow RIO borrowers to reduce the interest payable if they hold funds in an offset savings account with the Society.

The offset savings account is set up on an instant-access basis, so the borrower can withdraw money as and when they need it.

As they spend money from their offset savings account the amount offset against their mortgage will reduce, however borrowers can also add to their own savings.

The rates in the new retirement mortgage range start from 3.49% and gives borrowers the ability to choose between fees or fee-free, with or without a Lasting Power of Attorney and with or without an offset facility.

Ian Keeling, director of sales and marketing at Vernon, said: “Our customers are looking for new opportunities to safely release cash from their homes and seeking more flexibility from lenders. We were one of the first lenders to identify the needs of older borrowers by launching our retirement mortgage range in 2015. As an innovative and agile mutual business, we’re now delighted to expand the choices available to them.

“Our offset account allows borrowers to have certainty of instant access to a larger sum of money should they need it, without incurring interest until they use it.

“Of course, advice is essential, either through a regulated mortgage broker or directly through our experienced advisers. Borrowing in later life is a big decision but we are committed to giving customers greater control and choice over their finances.”