Kent Reliance Building Society has launched a mortgage that is designed to be passed down through families, rather than operating as a normal mortgage, as we know them.
The mortgage is based on interest only with the capital not needing to be repaid on a set date. This means the actual borrowed amount can be passed on to future generations and repaid when convenient.
Our view
Many have criticised the product, but whilst this type of mortgage does encourage debt, is that not the idea?
The concept behind this mortgage is innovative and it responds to what many people have been looking for.
This type of mortgage is so flexible because it can be repaid or continued, as needed by the borrower.
If parents take on the mortgage and pay interest through the years it becomes a debt on their estate on death. Heirs can choose to either repay the mortgage or continue it.
Whilst the final details of the mortgage are not currently known, we think it will be very useful for many people.