The Leeds Building Society has introduced new 10-year Retirement Interest Only (RIO) mortgages and announced criteria changes.
The updated products, which include a free standard valuation and a £999 product fee, include:
- 3.99% 10-year Retirement Interest Only fixed rate up to 55% LTV (loan to value)
- 4.09% 10-year Retirement Interest Only fixed rate up to 55% LTV with a £500 cashback
Matt Bartle, Leeds Building Society’s director of products, said: “We drew on our experience within the interest only market to become the first national high street lender to launch Retirement Interest Only products in July. Since then, we have further enhanced our expertise in this area and know from our own research and market trends that consumers are increasingly looking for longer-term products.
“As a result we’ve introduced two new 10-year Retirement Interest Only mortgages, one with a cashback option, to ensure we continue to offer choice to consumers and help meet the needs of their own individual circumstances.”
The Leeds is also introducing criteria changes to its Retirement Interest Only offering, enabling income drawdown plans and self-invested personal pensions (SIPPs) to be considered when assessing income for applications.
Bartle added: “We regularly keep our mortgage criteria under review to meet the needs of those often under served by the market.
“The consideration of appropriate drawdown plans and SIPPs during the affordability assessment is another example of providing increased flexibility for those looking at Retirement Interest Only mortgages as an option.
“Choosing a mortgage is always a highly personal decision and everyone’s individual circumstances and priorities are different, so it’s important consumers take appropriate advice via brokers.”