Holmesdale Building Society Mortgage

Holmesdale Building Society
  • Rate: 4.89%
    APR: 5.20%
    Exclusive: No
    Offers: Lifetime Mortgage Plan - options of roll-up or interest only basis.

Holmesdale Building Society offers lifetime mortgages as roll-up or interest only products. The building society has been in business since 1855, making it one of the oldest financial lending facilities. The building society started offering savers and borrowers products locally. Eventually Holmesdale branched out to all of England and Wales providing products for retired homeowners age 75 or older. Holmesdale does not offer a full list of lifetime mortgages, but specific options with unique features and qualifications.

Holmesdale Building Society offers a roll-up and interest only lifetime mortgage for their members. The choice is up to the member and standard lending criteria.

Details of the Retirement Option
Lifetime mortgage plans from Holmesdale Building Society begin at age 75 for any single applicant. If applying as joint homeowners the minimum combined age must total to 160 years. Holmesdale does reserve the right of discretion, meaning this total amount can be considered based on the application.

A minimum loan value is set at £26,000 with a maximum amount of £100,000 or 25% of the property value. In terms of the maximum Holmesdale will choose which ever mount is less the 25% or £100,000.

The property value is based on individual cases with no specific minimum or maximum set. The property value, location, potential for appreciation of value, property type, and condition determine if a home qualifies.

Unique Features of this Retirement Mortgage
The lifetime mortgage is either roll-up or interest only. The interest only mortgage allows for monthly repayments, while the roll-up version accrues interest onto the capital sum provided to the borrower. If using the interest only version proof of sufficient income is required to determine if interest payments can be made. The credit history is also checked.

Monthly interest payments keep the capital balance level throughout the loan. If sufficient funds are not available the roll-up version is an option in which the interest is repaid at the same time the capital sum is.

Inheritance protection is offered through the interest only version where the capital sum remains steadily the same.

Repayment Options
Repayment is set for death, home sale, or move to an assisted living facility. The property is usually sold for repayment in full on both interest only and roll-up versions. No early repayment charges exist for the interest only loan.

Holmesdale Equity Release Incentives
Incentives are not exclusive to any particular website. Holmesdale offers free re-mortgage legal packages as well as an early repayment charges incentive for 1 year. There are no arrangement or booking fees.