Newbury Building Society has launched its first retirement interest-only (RIO) mortgage to support borrowers in their later life.
Applicants must be a minimum age of 60 years old to be eligible for the variable mortgage product. There is no maximum age but borrowers must be retired and in receipt of their pension.
As incentives, the Society will offer a free standard mortgage valuation for properties valued up to £1 million, offer free legal for remortgages, and accept mortgage overpayments.
The mortgage product is interest-only and is tailored for those who do not want to downsize their property and wish to remain in their home.
The launch follows the recent increase in the Society’s upper age limit for mortgage lending, which now stands at 90 years.
Existing borrowers of Newbury Building Society can also transfer onto the product to borrow additional funds.
Roger Knight, lending manager at Newbury Building Society, said: “As a mutual, we listened to our members who expressed a need for a RIO mortgage.”
“People are living for longer and therefore, as a lender, it is our responsibility to ensure we are offering the right products at the right time.”
He concluded: “We hope our RIO five-year discount variable mortgage product ticks all the correct boxes and enables borrowers to fulfil their retirement ambition.”