Saffron launches retirement downsizing mortgage

The interest-only mortgage allows customers to use downsizing as their repayment vehicle with the ability to repay the loan after they have retired.

The three-year discounted mortgage is available at 2.94% up to 60% LTV with a £999 fee.

Applicants need a minimum equity in their property of £250,000, but the Society says it will consider applications below this level when "alternative customer assets are in place or if it is appropriate to the location".

Anita Arch, Saffron Building Society’s head of mortgage sales, said: “Some people don’t think it’s possible to get a mortgage in their 50s and 60s as retirement approaches. At Saffron, we don’t believe you should be limited by your age and we like to be as flexible as possible. You may be approaching retirement and have seen a property you want to call home but lenders have already said no. We say, let’s talk further and see what we can do to help.

“Our ‘lending into retirement downsizing’ mortgage is a standard interest-only mortgage with a difference. As the name suggests, it is available to customers who are looking to borrow into their retirement. Our mortgage stands out as it allows you to use downsizing as a way to pay off your loan after you stop working.”