Newbury Later Life Mortgage
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Newbury Later Life Mortgage Review
Later Life Mortgage Key Details
- Free Valuation
- Capital & Interest Basis
- 3-Yr Early Repayment Charges
- 20% Overpayments Allowed
I think you’ll agree with me when I say:
It’s REALLY hard to choose the best equity release scheme with all the choices available.
Or is it?
Is the Newbury Later Life Mortgage, equity release scheme the best?
Don’t let your equity release dream become a nightmare!
Luckily, we’re here to guide you on the ins and outs of equity release, as you deserve only the best.
However, it’s important to remember that not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.
As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.
Let’s find out!
Who Are Newbury?
Join the mortgage and savings community of Newbury Building Society. Owned by its’ members, this independent mutual has created long-term value and has recorded over £1 billion in assets.
Since 1856, Newbury has served its’ community in providing mortgages and savings. It was originally established under the name of The Newbury Permanent Benefit Building and Investment Society.
Today Newbury continues to focus on the individual needs of their customers providing residential mortgages to a wide range of applicant ages. A key focus is their Later Life Residential mortgages that is open to accepting applications from homeowners up to 90yrs old.
Later Life Residential mortgages can either be arranged on capital and repayment basis only, but must come with a fixed end date. They are available to older homeowners, up to 90yrs, who have the means to meet monthly payments over a fixed term and repay the mortgage using a suitable repayment strategy.
The rationale, of being open to those with the capacity to repay a mortgage, has also led to Newbury launching their Retirement Interest Only Mortgage (RIO).
Eligibility & Requirements
Residential mortgages from Newbury Building Society are accessible to anybody over the age of 21 who has permanent resident and work rights in the UK. A maximum age of 90 at the conclusion of the mortgage term is appropriate for retirees with sufficient pension and additional retirement income.
Joint applications are also permitted if both candidates fulfill the age and income requirements.
These mortgages can be used to acquire or refinance a borrower’s primary house. Capital raising is authorized for both property and non-property related reasons.
To evaluate the affordability of the mortgage payments, the Society will conduct a thorough study of income and spending.
There is no minimum equity requirement, and the minimum property valuation is £125,000. The property must be the primary residence of the homeowner and must be located in England or Wales.
Arrears, defaults, and CCJs will not be accepted by Newbury Building Society. To apply, homeowners must have a clean credit history. To verify your eligibility, please call the team.
These Newbury Later Life mortgages offer a first tax-free lump sum cash release that may be used right away. You will be expected to make mortgage payments for the duration of the loan, which will include both capital and interest payments.
The maximum loan-to-value (LTV) for interest-only mortgages is 70% of the property worth, while the maximum LTV for capital & interest plans is 90%.
The smallest loan amount at Newbury is 50,000, while the highest loan amount is £1 million.
The capacity to make monthly mortgage payments may be jeopardized if income falls, outgoings rise, or interest rates rise. This implies that if the homeowner fails to make payments on time, their home may be in jeopardy.
The lowest mortgage term is 5 years, and the maximum is 35 years, depending on the homeowner’s age at the time of purchase (s).
Only the first three years of the discounted product’s term are subject to tapered early repayment costs (ERCs). These are 3% in year one, 2% in year two, and 1% in year three.
Because this is a residential mortgage, there are no safeguards in place if anything unforeseen occurs that prohibits the homeowner from continuing to make payments. As a result, in order to use this program, homeowners must be certain that their income will be substantial and consistent enough to satisfy their payment commitments.
The homeowner is required to make all monthly capital repayments as they become due until the mortgage term expires. This implies that if the homeowner does not keep up with mortgage payments, their home may be at risk.
If a single applicant dies before the end of the term, the mortgage must still be repaid, generally through the sale of the home. On joint applications, the mortgage will be continued in the survivor’s name, with payments still required.
Because the Newbury Building Society is not a member of the Equity Release Council, its programs do not follow the same code of behavior as other equity release schemes such as the No Negative Equity Guarantee.
In addition to the monthly capital and interest payment, the Newbury Building Society will allow an additional 20% capital payback without penalty each year.
The mortgage is transferable and can be transferred to a new property if the acceptance and property conditions are met.
Unless another product is selected before or at the conclusion of the discounted interest rate term, the mortgage will return to Newbury’s standard variable rate (SVR).
Within its product range, the Newbury Later Life mortgage typically offers fixed and reduced rates. They are, however, subject to change, so call the team for the most up-to-date interest rates.
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