Legal & General Home Finance has introduced a retirement interest-only (RIO) product, available exclusively through Legal & General Mortgage Club.
Legal & General Home Finance’s current RIO option is available to the market at 3.55%, up to a maximum of 60% loan-to-value (LTV) and with a product fee of £599.
However, Legal & General Mortgage Club members will now be able to access the exclusive RIO with a rate set at 3.39% and no product fee.
Legal & General Home Finance’s product also comes with a range of other features, including the ability to make overpayments of up to 10% each year and a stepped percentage early repayment charge.
The majority of borrowers whose financial circumstances have been impacted by the pandemic intend to seek advice when securing their next mortgage, according to Legal & General Mortgage Club.
Three in five (60%) borrowers whose financial circumstances have changed, and 50% of those who have not seen a change to their earnings, say that it will be important to seek advice when looking for their next mortgage.
Just over a third (35%) of households that need to remortgage have at least one individual who has been financially affected by COVID-19.
One in three respondents (35%) that needs to remortgage state that at least one individual in their household has been negatively impacted financially by the pandemic.
Housing Watch: Deep breath and keep going
A healthy housing market is central to the UK’s economic recovery from the pandemic, so let’s hope the boom goes on
By Craig Hall 13
Few could have predicted the high demand for homes over the past year.
During the first national lockdown, no one knew what was in store for the housing sector. However, following the reopening of the property market in May, demand reached new heights. Buyers and sellers across the UK pressed ahead with their homeownership plans, leading to an 8.5 per cent increase in average house prices in 2020, according to the Office for National Statistics the highest annual growth recorded since 2014.
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