National Counties Building Society (NCBS) is a mutual organisation for the benefit of their members. The National Counties Building Society opened its doors in 1896, making it one of the oldest financial companies to provide equity release products. It is considered the largest single office building society in the UK with its headquarters in Surrey. More than 50,000 members in England and Wales have benefited from their lifetime mortgage products. National Counties Building Society believes in a conservative approach to lending, with low default levels as well as affordable retirement products.
How does National Counties Scheme Meet Interest Only Lifetime Mortgage Demands?
National Counties Building Society offers two repayment methods which fulfil interest only lifetime mortgage demands. Their mortgage product is a remortgage for retirees, where capital and interest or interest only can be repaid to the NCBS. If repaying online interest, a specific agreement term must be added to the contract such as 5 years or up to 40 years depending on the lending criteria required for the homeowner. Under their remortgage, a repayment option with a minimum of £45,000 can be borrowed up to £350,000. The loan to value percentage is 75% to ensure homeowners can make repayments and keep within current Financial Conduct Authority regulations for remortgages and interest only loans.
Qualifications and Criteria
This more standard retirement mortgage is provided to the owner occupier of the property, where the purpose of borrowing can include purchasing a property, to replace an existing loan, or offer additional funds. The funds can be used for specific purposes only.
To qualify retired homeowners will need to provide their annual pension income as their income. Original bank statements and the latest copy of their pension statement will be used to determine if they qualify. This more traditional mortgage is available to anyone who is 18 years old. While there is no specific age limit, NCBS can restrict the age limit based on income. For retirees aged 55 loan terms are 28 years, while someone aged 89 can take out the loan for 5 years. The property value will be used in the calculation to determine available funds based on the loan to value percentage.
Equity Release Features and Incentives
National Counties mortgage scheme comes with a choice in interest only or capital and repayment. It is a remortgage deal with free legal fees included as part of being a building society member.