Newbury Building Society And Lifetime Mortgage Review in 2024

Are You Planning On Using Newbury Building Society’s Equity Release Options? Find Out More About Its Retirement Mortgage Plans and Standard Lending Services Before You Commit…
  • Last Updated: 06 Feb 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui

Key Takeaways

  • The process for equity release with Newbury Building Society involves an initial consultation, a property valuation, completion of the relevant paperwork, and finally, the release of funds.
  • Their equity release works by allowing homeowners aged 65 and above to unlock a portion of their property's value while still retaining full ownership.
  • The rates vary and are subject to change, so it is advisable to directly inquire for the latest interest rates.
  • Newbury Building Society is a safe option for equity release, being a long-standing, reputable institution regulated by the Financial Conduct Authority.
  • There are no hidden fees, as all costs including arrangement fees and legal fees are clearly outlined during the initial consultation.

Who can blame you for wanting to know more about Newbury Building Society when the equity release market is growing like it is?

Retirement is becoming expensive, and you may need some extra cash to see you through your golden years comfortably.

Now you need a provider such as Newbury Building Society and want to discover what plan it could give you.

In This Article, You Will Discover:

    Our team of financial journalists spends countless hours combing through market information to bring you the best information about equity release providers.

    Therefore:

    NOTEEvery Investor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of Every Investor only and may not reflect the views or opinions of Newbury Building Society. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Newbury Building Society.

    Who Is Newbury Building Society?

    Newbury Building Society was first established 165 years ago and was first known as The Newbury Permanent Benefit Building and Investment Society. 

    In 2017 Newbury Building Society was said to have an asset value of just over £1bln.

    With ten convenient branches situated throughout the UK, Newbury Building Society has expanded to include over 70,000 members.

    The society offers it's members both mortgage and savings services.

    What Is Retirement Equity Release?

    For those aged 55+, equity release offers a mechanism to monetize the value locked in their homes, providing a vital source of funds for retirement equity release in the UK.

    This financial concept is often utilized to furnish a cash injection for retirement, home renovations, or intergenerational wealth transfer.

    Two main methods dominate the market: lifetime mortgages and home reversion plans.

    Under a lifetime mortgage, homeowners raise a loan on their property, with repayment deferred until the estate is settled.

    Home reversion, in contrast, involves selling a part of your home in return for a lump sum or periodic payments, while maintaining living rights.

    What Are the Equity Release Options Available Through Newbury Building Society?

    Newbury Building Society offers two main equity release options: Lifetime Mortgages and Home Reversion Plans.

    Lifetime Mortgages allow homeowners aged 55 and over to unlock wealth tied up in their property, without having to sell their home.

    Home Reversion Plans, on the other hand, involve selling a part or all of your home in return for a tax-free lump sum, a regular income, or both while retaining the right to live there.

    Both options come with unique features. Lifetime Mortgages are loans secured against your home and only repaid when you pass away or move into long-term care.

    An attractive feature is the 'no negative equity guarantee', ensuring you'll never owe more than the value of your home.

    Home Reversion Plans, allowing homeowners aged 65 and over to release equity, enable you to live rent-free in your home, even after selling a portion or full ownership.

    This makes it an appealing option for retirees needing additional income.

    Why Consider Newbury Building Society?

    You could consider Newbury Building Society because it is a well-established mutual society that has been around for about 165 years.

    Furthermore, it is a lender specialising in mortgages for those over 55.

    As a provider, it is a good option to consider because it is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA), and is part of the FSCS, which protects you as a client.

    Newbury Building Society was also awarded “Best Specialist Mortgage Provider” in the British Bank Awards 2022.1

    Does Newbury Building Society Offer Equity Release or Lifetime Mortgages?

    No, Newbury Building Society does not offer equity release, but it has alternative options for those looking to borrow in later life.

    What Services Does Newbury Building Society Offer?

    Newbury Building Society offers it's members mortgage and savings-related services.

    It's standard mortgages are available to members until they are 90, and the retirement interest-only mortgage is available to those over 60.2

    A look at its products:

    Mortgages:

    • Self-employed mortgage
    • Retirement interest-only mortgage
    • First-time buyer mortgage
    • Moving home mortgage
    • Remortgaging
    • Shared mortgage
    • Self-build mortgage
    • GoGreen mortgage
    • Buy-to-let mortgage

    Savings:

    • Easy access accounts
    • Children’s savings
    • Deposit account
    • Business savings
    • Cash ISA accounts
    • Restricted access accounts

    Newbury Building Society’s Equity Release Schemes

    Newbury Building Society does not have any equity release schemes, although it offers mortgage products suitable for retirees.

    The products it has for later life lenders are as follows:

    • A retirement interest-only mortgage that is available to those between 60 and 80.
    • A standard mortgage that is available to anyone but has an upper age limit of 90, making it accessible to retirees.

    Newbury Building Society’s Equity Release Scheme Features

    Newbury Building Society does not offer equity release; however, we will study the features of its later-life mortgage plans more closely.

    More details:

    Standard Mortgages

    The standard mortgages available from Newbury Building Society are for anyone over 18, and the term can run until the borrower's 90th birthday.3

    With this type of loan, you could remortgage well into your golden years at a favourable rate and release equity while doing so.

    Retirement Interest-only Mortgage

    Retirement interest-only mortgages from Newbury Building Society are available to those applying between the ages of 60 and 80 years of age.4

    To apply, you need to have a minimum income of £30,000 per annum, a home value of at least £150,000, and application fees are £600 or £850 if it is a re-mortgage deal.

    This plan has no fixed term, and you only have to repay the monthly interest amounts; however, you will pay early repayment charges if you pay it off within three years from acceptance.

    The variable interest rate of 5.20% to 6.30%* is discounted by 1% for the first five years, with a maximum LTV of 50%.

    The added bonus is that overpayments are accepted, and the first £700 of the valuation fee is included.

    * While correct a the time of writing, these figures may have changed since our last update.

    What Are the Costs Associated With Newbury Building Society?

    Interest Rates

    Newbury Building Society does not have equity release interest rates.

    More details on the RIO mortgage and Standard mortgage rates:

    Standard Mortgage Interest Rates

    The fixed interest rate on Newbury Building Societies standard mortgages is discounted for the first two, three or five years. 

    After the initial discounted period, these rates rise to between 6.6% and 6.8% APRC.*

    * While correct a the time of writing, these figures may have changed since our last update.

    RIO Mortgage Interest Rates

    RIO mortgages come with a 1.00% discount for the initial five years, after which it reverts to the regular SVR for the rest of the mortgage term.

    Fees

    Newbury Building Society’s fees differ according to the product or plan you take out with it.

    The fees by product:

    • Standard mortgage fees - Starting from £300 to £1,550, depending on your plan.
    • Retirement interest-only mortgage - £600 for new buyers or £850 for those re-mortgaging, and £100 for the exit administration fee.

    Does Newbury Building Society Have An Equity Release Calculator?

    No, Newbury Building Society does not have an equity release calculator.

    What Are The Advantages of Choosing Newbury Building Society?

    The advantages of Newbury Building Society include that it has a retirement interest-only mortgage for those aged 60 to 80.

    More details:

    Newbury Building Society Pros

    • It is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA), and you are protected by the FSCS.
    • The upper age limit for applicants is 90 on the standard mortgage range and 99 on the retirement interest-only option.
    • Newbury Building Society was established more than 165 years ago.
    • The rates it offers on retirement interest-only mortgages are discounted for five years.
    • Valuations are included up to £700.

    What Are The Disadvantages of Choosing Newbury Building Society?

    The disadvantages of choosing Newbury Building Society include that there are no equity release plans.

    Newbury Building Society Cons

    • To qualify for retirement interest-only mortgages, you need a minimum income of £30,000 per annum and a home value of £125,000.
    • You need to be over 60 for a retirement interest-only mortgage, but with other providers, you can be 55 for a lifetime mortgage.
    • Newbury Building Society does not offer equity release.

    How Did We Review Newbury Building Society?

    We reviewed Newbury Building Society by taking all information about it's products and criteria and then adding it to this independent review so it is easy for you to use.

    NOTE: This article is an unaffiliated, independent, third-party, review of Newbury Building Society.

    For personal recommendations, please remember to contact your equity release mortgage broker.

    What Do Newbury Building Society’s Customers Think?

    Reviews

    Customer reviews about Newbury Building Society:

    Complaints

    To lodge a complaint with Newbury Building Society, you can contact it in the following ways:

    • By post - 90, Bartholomew Street, Newbury, West Berkshire, RG14 5EE.
    • Visit - you can go to your branch.
    • By phone - on 01635 555 700.
    • By email - complaints.mailbox@newbury.co.uk

    Newbury Building Society strives to resolve complaints within ten working days; however, if it can not, it will write to you and acknowledge receipt; full resolution can be expected in eight weeks.

    Newbury Building Society FCA Details

    FCA Address: 

    90, Bartholomew Street, Newbury, Berkshire, RG14 5EE, UK

    Trading Names: 

    Newbury Building Society.

    FCA Permitted Services: 

    • Banking
    • Mortgages and home finance
    • Consumer credit
    • Investments

    Regulators: 

    • Financial Conduct Authority5
    • Prudential Regulation Authority7

    Registration Numbers: 

    • Firm reference number: 206077
    • Mutual society number: 384B

    Newbury Building Society Contact Number

    Newbury Building Society’s contact number is 01635 555 700.

    Common Questions

    What Is The Process For Equity Release With Newbury Building Society?

    How Does Newbury Building Society Equity Release Work?

    What Are The Rates For Newbury Building Society Equity Release?

    Is Newbury Building Society A Safe Option For Equity Release?

    Are There Any Hidden Fees With Newbury Building Society Equity Release?

    Is Newbury Building Society a Member of the Equity Release Council?

    Who Owns Newbury Building Society?

    Newbury Building Society Jobs

    Does Newbury Building Society Offer Equity Release?

    Is Newbury Building Society Equity Release Safe?

    In Conclusion

    Newbury Building Society does not offer equity release; however, it has a great standard mortgage and retirement interest-only mortgage available to retirees.

    The options it has could easily be used as an alternative to equity release for later-life lenders.

    We would advise you to seek financial advice before considering Newbury Building Society for an equity release alternative.

    The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.

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