Nationwide Building Society launches their lifetime mortgage product with the vision to address the needs of an ageing population. This is great news for the equity release market. Being another high street lender to offer the product, this is promising news for the market and confirms that equity release is considered even more mainstream for retirement funding.
What is a lifetime mortgage with Nationwide?
The lifetime mortgage product with Nationwide is available to homeowners aged 55 to 84. As with some lifetime lenders in the market, customers will not be required to make any repayments during their lifetime. The product, like some lifetime mortgages, allows the client to release funds from their property without the requirement of making repayments. Instead, interest is added to the sum borrowed with a rate fixed for the term of the mortgage. The total rolled-up amount is repaid only at the end of the customer’s life or if they go into long term care.
Nationwide director of mortgages Henry Jordan said:
More people are living longer and many older people have significant wealth tied up in their property, with the over 55s holding as much as £1.8trn in their property.
Henry Jordan, Nationwide
Why it’s best to still seek independent advice
The launch of the Nationwide lifetime mortgage product is fantastic news for strengthening the market. It also gives broader awareness of a product that can be real lifeline for those with outstanding interest only mortgages. But remember, it’s highly recommended to shop around.
By seeking independent, impartial advice, many may be able to find a deal that is better suited to their needs. An adviser who is not tied to one particular lender may be able to advise on the whole market. This means they can find the right product for the individuals’ circumstances. With no commitment to one lender and with the customers’ needs always coming first.
Award winning equity release advisers, Bower, are fully independent and can explore the whole of market for lifetime mortgages and other types of equity release products like Interest Only Lifetime Mortgages. They can also source and advise on products for those aged 55+ with no upper age limit. Unlike Nationwide’s lifetime mortgage, which is capped and only available to those aged 55 to 84. Bower also take into consideration the lifestyle and health of each client, which can sometimes result in being able to release more funds.
Bower’s CEO, Geoff Charles, says:
Having worked in the industry for over a decade, it’s clear that for the clients’ best interest, independent advice is taken. With over 60 products on the market it is imperative to explore the whole of market to source a product that’s best suited to each individual needs.
Geoff Charles, Bower
This is a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
