The Nottingham Building Society has added three Retirement Interest Only (RIO) mortgages to its portfolio.
There are seven year fixed (3.85%), three year fixed (3.34%) and two year discount (2.99%) products available, all with a £995 fee, a free valuation and 40% loan to value (LTV) limit.
In a recent survey of retirees over 50, the Nottingham revealed 39% plan to spend their money whilst they are alive as opposed to leaving significant inheritance. 36% holiday three times a year and 39% class retirement as the best time of their lives. For many later life circumstances, RIO mortgages provide an interesting option.
Nikki Warren-Dean (pictured), head of intermediary sales for the Nottingham for Intermediaries, said: “The addition of RIO mortgages to our portfolio adds choice for people in, or heading towards, retirement.
“Our research shows many people want to use their money to enjoy their retirement rather than having large amounts of capital tied up in their property. RIO mortgages can help, so we wanted them to be available to customers.
“It comes hot on the heels of our announcement last month to raise the maximum lending amount for 95% LTV mortgages from £275,000 to £500,000 – further highlighting our desire to be there for our customer’s mortgage needs whether it’s their first or last house.
“As with all the Nottingham for Intermediaries products, RIO mortgages are provided exclusively via our broker network so we have every confidence they will be supplied with expert advice and support to ensure it’s the right fit for the customer.”