In a major first, Nationwide Building Society has now become the first lender on the high street to make accessible to all a comprehensive package of later life mortgage options and advice for older borrowers.
Earlier this year, the Society successfully launched the suite of mortgage options supporting those in and approaching retirement to its existing mortgage members. Now that package has been expanded as planned across the board to members and non-members alike.
There are three different Nationwide Later Life mortgage products coupled with dedicated advice for those aged 55 and above, accessed directly through Nationwide via a team of specialist Later Life mortgage consultants. Alongside Nationwide’s standard mortgage lending options, the Society will offer a Retirement Capital and Interest product (RCI), a Retirement Interest Only (RIO) product and a Nationwide Lifetime Mortgage for older borrowers. Accessed with the help of the Nationwide specialists, the advice process allows for a simultaneous eligibility assessment on the suite of products.
This makes Nationwide the first major lender to offer Retirement Interest Only (RIO) options to the wider market, following the FCA mortgage rule changes last year. Rates for Retirement Interest Only start from 2.74% for tracker products, while the market-leading fixed rates start at 2.99%. Rates for Retirement Capital and Interest products are aligned to RIO rates, and all products come with no advice or product fees as standard.
The Lifetime Mortgage offers a fixed rate for life and these start at 3.41%. Across the market, lifetime providers often charge product and advice fees with their equity release products, while the outlay on legal advice can be a barrier. However, the Nationwide Lifetime Mortgage offers both no upfront fees and a £1,000 cashback that could be used towards the necessary independent legal advice costs.
The move comes in response to the growing needs of an ageing population, as well as the gap in the market for products and advice to cater for those looking for later life borrowing, enabling them to access the value in their homes and make the retirement choices they require.
Applicants must be 55, both if joint, and can apply up to age 85, although for existing Nationwide mortgage members there are borrowing options accessible up to the age of 95. There are no product, valuation or advice fees for any of the Nationwide Later Life products, and borrowing can be for a number of reasons including home maintenance and improvements, gifting to family members, holidays and debt consolidation.
Jason Hurwood, Nationwide’s Director of Home Propositions, said: “This move is in direct response to growing demand for choices in later life, which is why we are now extending our Later Life package of products and advice to both members and non-members. It comes against evolving demographic and social changes that mean people live longer and need to make the financial choices that enable them to fund the life in retirement they want. They also want to take charge of their futures and shape how they live their lives.
“For many this means being able to access the value in their home in order to secure that life, including making their homes practically suitable and using the equity to both help themselves and help family members. We are now the first major high street lender to support that growing demand with a variety of borrowing options to access the value locked up in their homes and is part of our ongoing plan to address the needs of a changing and ageing population, whatever their individual choices.”
About Nationwide
Nationwide is the world's largest building society as well as one of the largest savings providers and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.
Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 18,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.
