Is Penrith Building Society an option for equity release finance?

As the equity release market continues to grow and more products become available, it has become more important than ever to consider all your options before deciding.

Choosing the right equity release for your individual needs and circumstances can be daunting, and is not a decision you can take lightly.

So how do you keep up with all the goings on in this ever-changing market?

We are here to help!

As experts in the equity release sector, we have reviewed leading schemes to provide you with current information on what is available and with whom.

Therefore:

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

Who Exactly Is Penrith Building Society?

Penrith Building Society is a UK building society based in Penrith, Cumbria¹. 

It has been helping generations of savers and borrowers through their financial service needs since 1877², when it first opened its doors in the beautiful town of Penrith.

It is a member of the Building Societies Association³.

Penrith Building Society is a mutual organisation that exists for it's members and has spent over the past 140 years building a reputation that society trusts.

What Does Equity Release Mean?

Equity release provides a financial avenue for seniors to utilize their home's equity.

It enables converting a part of your property's value into cash, avoiding the need to sell.

This financial model is marked by its repayment plan; the loan, along with accrued interest, is repaid at the house’s eventual sale, often after pivotal life events of the homeowner.

Learn More: Equity Release loan

Does Penrith Building Society Offer Equity Release?

Penrith Building Society does not currently offer equity release products such as lifetime mortgages or home reversion plans. Instead, the society focuses on traditional mortgages, savings accounts, and Retirement Interest Only (RIO) mortgages for older borrowers. If you are specifically seeking equity release, you will need to consider other providers or specialist lenders.

For a comprehensive overview of equity release costs and alternatives, visit the Equity Release Costs Checklist.

Who Can Access Equity Release?

Equity release is available to homeowners over 55, offering a financial boost in retirement.

How Does the Penrith Building Society Process Work?

Penrith Building Society process begins with a comprehensive consultation.

Penrith Building Society offers different plans to suit diverse needs, such as a lifetime mortgage or a home reversion plan.

Once you've selected a scheme, necessary legal work is completed and the agreement is formalised.

Upon completion, you receive the funds either as a lump sum or regular income.

This process, while intricate, is designed to ensure you make informed decisions about your financial future.

Why Should You Opt for Penrith Building Society?

Choosing Penrith Building Society ensures competitive rates and personalised service.

Why Should You Consider Penrith Building Society?

You may consider Penrith Building Society for it's range of Retirement Interest Only Mortgages (RIOs) designed for the 55+ age group.

After 140 years, Penrith Building Society’s ethos to provide fair services to it's members has stood the test of time and continues to instil the utmost trust and confidence.

What Are the Pros and Cons of Choosing Penrith Building Society?

The advantages of Penrith are it has a solid long-standing reputation. The disadvantage is that it does not offer equity release.

More information:

What Are the Benefits of Penrith Building Society?

The pros of Penrith Building Society are:

• It has been around for over 140 years.
• It is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA)⁴.
• It offers an RIO mortgage for later-life lenders over the age of 55 years.

What Are the Drawbacks with Penrith Building Society?

The cons of Penrith Building Society are:

• It does not offer equity release.
• It's RIO mortgage requires that you make monthly interest payments.
• If you can not make your monthly interest payments, you risk losing your home.

How Does Penrith Building Society Stand Out in Cumbria?

In Cumbria, Penrith Building Society is renowned for its tailored solutions and local expertise.

How Does Penrith Building Society Compare to Other Cumbria Services?

Penrith Building Society stands out in the Cumbria market with its personalized service approach and competitive interest rates.

Unlike larger, nationwide providers, Penrith focuses on understanding individual customer needs, offering tailored advice and solutions.

Its local expertise allows for a nuanced understanding of the Cumbria property market, which benefits customers in terms of loan-to-value ratios and tailored advice.

While it may not match the scale and product range of national entities, its customer-centric approach and community focus make it a strong contender in the region.

What Services Does Penrith Building Society Provide?

Although Penrith Building Society does not offer equity release, it does offer a range of mortgages and savings plans. 

What it offers:

Mortgages:

• New Home Mortgages
• Multi-Unit Mortgages
• Second Home Mortgages
• Remortgages
• Buy-to-Let Mortgages
• Retirement Mortgages
• Expat Mortgages

Savings:

• Instant Access Savings
• Regular Savings
• Tax-Free Savings
• Longer Term and Fixed Rate Savings
• Saving for a Home
• Junior Savers

What Financial Considerations Come with Penrith Building Society?

Considering Penrith involves evaluating interest rates, potential fees, and long-term financial impacts.

What Are the Interest Rates for Penrith Building Society?

Penrith Building Society’s current interest rates vary by product type.

Generally speaking, annual equity release interest rates can be available from 5.97% to 6.28%*(AER).

*While we regularly review our rates, these may have changed since our last update.

What Impact Do Interest Rates Have on Penrith Building Society?

Interest rates are a crucial factor, as they determine the loan's cost over time.

Penrith Building Society's interest rates are competitive within the industry, affecting how quickly the borrowed amount grows over the years.

Lower rates mean slower growth of the debt, preserving more home equity for the borrower or their heirs.

The society's rates influence the attractiveness of their equity release offerings, with potential customers often comparing these rates against broader market trends and other financial institutions in the region.

What Fees Are Associated with Penrith Building Society?

Penrith Building Society fees may include an application fee.

It may also offer you a free valuation, though this depends on the plan you select.

What Do Customers Say About Penrith Building Society?

Customers praise Penrith Building Society for its transparency, support, and the positive outcomes of its equity release services.

Penrith Building Society's customer reviews can be found on websites such as Smart Money People and Feefo.com.

Read what it's customers have to say:

• Penrith Building Society reviewed on Smart Money People
• Customer reviews of Penrith Building Society on Feefo.com

What Are the Success Stories of Penrith Building Society's Customers?

Success stories from Penrith Building Society's customers often highlight the financial freedom and enhanced quality of life achieved through their schemes.

Testimonials frequently commend the society for its guidance, transparency, and support throughout the process.

These stories not only reflect customer satisfaction but also demonstrate the tangible benefits of equity release in meeting diverse financial needs in later life.

What Are Common Complaints About Penrith Building Society?

If you are dissatisfied with Penrith Building Society and wish to make a complaint, the best way to do so is in writing to:

Penrith Building Society, 7, King Street, Penrith, Cumbria. CA11 7AR.

Alternatively, you can contact the complaints department by telephone on 01768 863675 or place a complaint via the form on it's website.

Alternatively, you could use a review site, such as Trustpilot⁵ or Feefo⁶, to provide an assessment.

Is There an Equity Release Calculator Available at Penrith Building Society?

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

Why not try our easy-to-use calculator below and see approximately how much you can release?

What Are the FCA Details for Penrith Building Society?

Penrith Building Society is fully regulated by the FCA, ensuring a secure and trustworthy service.

What Are the Trading Names for Penrith Building Society?

Penrith Building Society

What Are the FCA Permitted Services for Penrith Building Society?

• Banking
• Insurance
• Mortgages and Home Finance
• Investments
• Other Services

Who Regulates Penrith Building Society?

• Financial Conduct Authority (FCA)
• Prudential Regulation Authority (PRA)⁷

What Are the Registration Numbers for Penrith Building Society?

• FCA Ref Number: 164473
• FCA Mutuals Ref Number: 434B

Where Can You Find the FCA Link for Penrith Building Society?

FCA Link: FCA Link

How Can You Contact Penrith Building Society?

• +44 176 886 3675
• enquiries@penrithbs.co.uk
• 7, King St, Penrith, CA11 7AR, UK.

Understanding the Difference—Equity Release vs. RIO Mortgages

It’s crucial to distinguish between equity release and RIO mortgages, as they serve different needs and carry different risks.

Equity Release

• No monthly repayments required.
• Interest compounds over time, reducing inheritance.
• Available from age 55, with flexible drawdown or lump sum options.
• Loan repaid from property sale after death or long-term care.

RIO Mortgage

• Monthly interest payments required for life.
• Capital repaid from property sale.
• Affordability checks required.
• Retain more equity if payments are maintained.

Understanding these differences can help you choose the right product for your retirement goals.

How to Choose the Right Later-Life Lending Solution

Selecting the best financial product for retirement requires careful consideration of your income, health, and long-term plans. Here are some steps to guide your decision:

Assess Your Income and Expenses

Evaluate whether you can comfortably afford monthly payments (as required by a RIO mortgage) or if a no-payment equity release plan is more suitable.

Consider Inheritance Goals

If leaving an inheritance is important, compare the impact of compounding interest (equity release) versus regular payments (RIO).

Seek Regulated Advice

Consult a qualified, FCA-regulated adviser to review your options and ensure you understand the risks and benefits of each product. For more on inheritance protection, see How Does Inheritance Protection Work with Equity Release?.

Compare Costs and Features

Use online calculators and comparison tools to review interest rates, fees, and product features across multiple providers.

Frequently Asked Questions About Penrith Building Society

In Conclusion

Penrith Building Society has helped generations of savers and borrowers fulfil their financial needs since 1877.

Operating nationwide, Penrith offers a range of Retirement Interest Only Mortgages (RIOs) designed for the 55+ age group.

RIOs are not equity release, and you will have to prove that you can make the required monthly interest payments.

Before deciding whether or not Penrith Building Society's equity release alternatives will suit you, consult with a qualified financial advisor.

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.