Vernon Building Society Equity Release And Lifetime Mortgage Review in 2024

Are You Interested To Find Out About Vernon Building Society? Get the Latest Information on Offer, Including What Vernon Building Society Offers, Pros, Cons, Fees, and More! Read On…
  • 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 application process for Vernon Building Society equity release involves an initial enquiry, financial consultation, property valuation, legal documentation, and final approval.
  • It works by allowing homeowners aged 55 or over to unlock the value of their home while still living in it, often as a lump sum or regular income.
  • Risks include potential impact on your entitlement to means-tested benefits, a reduced inheritance for your heirs, and the possibility of leaving a larger debt than your property's worth if house prices fall.
  • Benefits include accessing cash tied up in your property without needing to move, typically tax-free cash, and the ability to make no monthly repayments if you choose a lifetime mortgage.
  • Qualifying typically requires you to be over the age of 55 and own a property in the United Kingdom, although other factors such as the property value and any existing mortgage balance will also be considered.

Have you heard about Vernon Building Society equity release, and which services they offer?

Are you wondering if they offer equity release for over 50s?

We are here to help!

We have searched through all pertinent information about the recommended equity release companies and other alternatives so that we can bring you all the most credible facts about each.

In This Article, You Will Discover:

    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 Vernon Building Society. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Vernon Building Society.

    Who Is Vernon Building Society?

    Vernon Building Society is a UK-based mutual building society that was founded in 1924 and is a member of the Building Societies Association.1

    Vernon Building Society is run for the benefit of it's members; thus, any profit it makes are put back into the society for the members' good.

    It is a reputable provider of savings and mortgage products and services.

    What Is Equity Release?

    Equity release offers a way for people over 55 to access the financial value of their home without selling it.

    This financial strategy can provide extra cash to enhance retirement living, cover unexpected expenses, or manage existing debts.

    The process typically involves two options: lifetime mortgages and home reversion plans.

    In a lifetime mortgage, you secure a loan against your property, with the amount, plus interest, repaid from the sale of your home when you pass away or enter long-term care.

    Home reversion entails selling a part of your property to a provider in return for a lump sum or regular income, while retaining the right to reside there.

    Learn More: What Is Equity Release?

    What Is the Process for Equity Release with Vernon Building Society?

    Releasing equity with Vernon Building Society involves a straightforward process.

    Firstly, they set up a consultation with a financial adviser who assesses your circumstances and explains the available options, including lifetime mortgages and home reversion plans.

    The adviser will clarify the potential impacts on your estate and eligibility for means-tested benefits, ensuring you make an informed decision.

    Once you've chosen an equity release plan, they will process the legal paperwork and valuation of your property.

    The time this takes can vary, but rest assured, they endeavour to make it as swift and stress-free as possible.

    After the property valuation and legalities are sorted, the agreed equity is released as a lump sum or regular income.

    With Vernon Building Society, they prioritize clear communication and transparency through each step of the process.

    Why Should You Consider Vernon Building Society?

    You should consider Vernon Building Society because it operates for the benefit of it's members and has won multiple awards.

    More information:

    • It operates for the benefit of it's members, who collectively own the business.
    • Named the ‘Best Savings Provider’ at the British Bank Awards 2020.2
    • Profits are invested back into the Society so that the members benefit.
    • It is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA), making it a safe and fair service provider.
    • It has decades of industry experience.

    What Services Does Vernon Building Society Offer?

    The services that Vernon Building Society offers include mortgages and financial advice, among others.

    More services it offers:

    • Mortgages
    • Savings
    • Insurance
    • Financial advice
    • Online services

    Does Vernon Building Society Offer Equity Release or Lifetime Mortgages?

    No, Vernon Building Society does not offer equity release.

    However, it does offer a retirement interest-only mortgage for later-life lenders.

    Vernon Building Society’s Alternatives

    Vernon Building Society offers retirement interest-only mortgages.

    The retirement interest-only mortgage plans it offers include the (LT22) two-Year 2.81%* Discount Floored RIO and the (LT26) five-Year 2.51%* Discount Floored RIO.

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

    Vernon Building Society’s Alternatives' Features

    One of the features of Vernon Building Society's RIO mortgage is transferability to a new property.

    More features:

    • No maximum age limit.
    • You can get a maximum LTV of 50%.
    • All borrowers must be at least 55 years of age.
    • An early repayment charge applies if you settle your mortgage.
    • It can be transferable to a new property, subject to certain conditions.
    • The minimum loan amount is £25,000.

    What Are Vernon Building Society’s Interest Rates?

    Vernon Building Society's retirement interest-only mortgage interest rates vary from 5.20% to 6.30% depending on the initial period and subsequent period.

    More information:

    (LT22) Two-Year 2.81% Discount Floored RIO

    • Initial rate of 2.54%
    • Subsequent rate (SVR) of 5.20% to 6.30%
    • The interest rate will never fall below 5.20% to 6.30% during the discount period

    (LT26) Five-Year 2.51% Discount Floored RIO

    • Initial rate of 2.84%
    • Subsequent rate (SVR) of 5.20% to 6.30%
    • The interest rate will never fall below 5.20% to 6.30% during the discount period

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

    What Are Vernon Building Society’s Fees?

    Vernon Building Society’s fee for the arrangement of the RIO is £499.

    You may need to pay valuation fees and other related mortgage fees.

    Fees that you can generally expect to pay include:

    • Valuation fees
    • Solicitor’s fees
    • Arrangement fees
    • Advice fees
    • Closing fees

    Depending on your chosen plan, these fees usually total from £1,500 to £3,000.

    Does Vernon Building Society Have an Alternative to an Equity Release Calculator?

    No, they do not since they do not offer equity release.

    However, if you are looking to release funds, use this fast equity release calculator below to see approximately how much you could release.

    What Are The Advantages and Disadvantages of Vernon Building Society?

    The advantages and disadvantages of Vernon Building Society include that RIO mortgages are transferable to new properties; however, it does not offer traditional equity release plans.

    More information:

    Vernon Building Society Pros

    The pros of Vernon Building Society include that there is no maximum entry age.

    More information:

    • RIO mortgage is transferable to another property, subject to certain conditions.
    • There is no maximum age for applicants.
    • A safe and reputable society that invests back into its people and members.
    • It is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA).
    • It is an award-winning society with a proven track record.

    Vernon Building Society Cons

    The cons of Vernon Building Society include that you will pay early repayment charges if you choose to settle your loan.

    More information:

    • No incentives on RIO mortgages.
    • Decrease in assets when opting for equity release.
    • An early repayment charge applies.
    • Equity Release will impact the amount of inheritance you can leave.

    How Did We Review the Information on Vernon Building Society?

    Our information guide for Vernon Building Society was compiled by taking all the relevant information and adding it to this easy-to-read article for you to consider.

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

    Vernon Building Society Customer Reviews

    See what customers of Vernon Building Society are saying:

    Vernon Building Society Complaints

    Vernon Building Society complaints should be submitted in writing so that it can correctly address your complaint with all the relevant information at hand.

    You can submit your written complaint to your closest branch, where it will be dealt with.

    Vernon Building Society is committed to attending to complaints in a timely manner.

    Alternatively, complaints can be voiced on one of the popular consumer review sites.

    Vernon Building Society FCA Details

    Trading Names

    Vernon Building Society

    FCA Permitted Services

    • Banking
    • Insurance
    • Mortgages and Home Finance
    • Consumer Credit
    • Pensions
    • Investments
    • Other Services

    Regulators 

    • Financial Conduct Authority (FCA)3
    • Prudential Regulation Authority (PRA)4

    Registration Numbers

    • FCA Ref Number: 195475
    • Companies House Number: 02270982
    • Mutual Public Register Number: 625B

    FCA Link

    Vernon Building Society Contact Number and Address

    • +44 161 429 6262
    • 19, St. Petersgate, Stockport, SK1 1HF, UK.

    Common Questions

    What Is The Process Of Applying For Vernon Building Society Equity Release?

    How Does Vernon Building Society Equity Release Work?

    Are There Any Risks Involved With Vernon Building Society Equity Release?

    What Are The Benefits Of Vernon Building Society Equity Release?

    Can I Qualify For Vernon Building Society Equity Release At My Age?

    Who Owns Vernon Building Society?

    How Can I Apply for a job at Vernon Building Society?

    Does Vernon Building Society Offer Equity Release?

    Is Vernon Building Society Safe?

    Is Vernon a Member of the Equity Release Council?

    In Conclusion

    You can consider Vernon Building Society as an option for a retirement interest-only mortgage as an alternative to equity release.

    Not only is it focused on benefiting it's members, but it also invests any profits back into the Society.

    It is an award-winning society with a proven record.

    You can rest assured that you are dealing with a reputable service provider that is authorised and regulated in the UK by the Financial Conduct Authority (FCA) when it comes to using Vernon Building Society for equity release alternatives.

    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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