In April 2019, Nationwide Building Society became the first lender on the high street to offer a comprehensive package of mortgage options and advice for older borrowers.
The move was geared towards supporting those in and approaching retirement; with the Society launching a new suite of mortgage products coupled with dedicated advice for those aged 55 and above. It was aimed at addressing the needs of an ageing population by bridging the gap in the market for later life borrowing options, enabling them to live their retirement of choice.
The revised and enhanced Later Life lending products were launched in response to feedback from Nationwide members about their evolving needs and came against a backdrop of demographic and social changes. People are living longer and will need adequate funding to support their lifestyle. For a growing number of people, having the ability to access the value in their home provides them with much greater choice in making important financial decisions, such as making the necessary improvements and adaptations to their homes to make them suitable.
The Society offers three Later Life lending options. These are a Retirement Capital and Interest product (RC&I), a Retirement Interest Only (RIO) product and a Nationwide Lifetime Mortgage for older borrowers. And as a ‘trusted brand’, having an equity release offering for customers is a game-changer.
Initially the products were only available to existing Nationwide mortgage members, but they were rolled out more widely to non-members in August 2019.
Nationwide is the first major lender to offer Retirement Interest Only (RIO) options to the wider market, following the FCA mortgage rule changes last year.
The move from a trusted name such as Nationwide has been widely welcomed by mortgage intermediaries and is the first step in providing those in and approaching retirement a comprehensive package of funding options.