The product is over a nine year mortgage term with early repayment charges for the first five years. It is available on a repayment basis only and calculates interest monthly.
Keith Barber, associate director of business development at National Counties Building Society, said: “There are more than 1.6 million retired people with an outstanding mortgage in the UK and a further 600,000 with interest-only mortgages that are due to mature.
"We are trying to address this area with a mortgage that enables people to put in place a structured and affordable repayment plan with the comfort of known monthly repayments.
“We take our lending responsibilities seriously and our experienced underwriters individually assess each application. This approach enables us to look at each case on its merits.
“We are committed to offering solutions which will support existing homeowners at a time when family finances are under pressure.”
Customers are able to withdraw equity from their existing main residence, with fixed monthly payments, and the structured repayment profile ensures that the initial debt is reduced steadily to zero over the nine year term.
