Retirement mortgage rates launched by Atom.
Atom have launched retirement mortgage rates for customers aged 65 and above.
The new retirement mortgage rates offered are for up to 40 % of a property's value on an interest-only basis at 5.74 % variable over a 10 year term, which is renewable.
The deal is offered for a maximum loan of £250,000 although in certain cases this may be negotiable. A £299 booking fee will charged which is to be paid in advance and a £1,495 arrangement fee will also apply. Redemption penalties are applicable but these are charged for the first year only. Legal fees of £370 are also charged for standard re-mortgage deals.
Customers must be owner-occupiers with a minimum age of 65 and Atom demand that their family members are informed of the transaction details by their solicitor.
Dale Jannels who is the managing director of Atom commented saying that the lender believes they have come up with a solution for an obvious gap in the mortgage market. He added that the exclusive new deal is aimed at helping mortgage customers who have reached retirement age purchase or re-mortgage property. Most other lenders close the door to mortgage borrowers in their 60s .
To qualify for the deal Atom require equity of £150,000 above the mortgage amount requested. As the deal is interest-only the equity required is to ensure borrowers have substantial funds available at the end of the mortgage term.
The lender feels that the mortgage rates and fees quoted are competitively priced and adds that the deal also offers flexibility as it can be redeemed after just one year.
