The Nottingham Building Society has added to its retirement interest-only (RIO) mortgage range to help with home ownership.
Its two new offerings – a five-year fixed (3.55%) and a two-year fixed (3.20%) – are both with a £995 fee, while the fee from the existing two-year discount (2.99%) product has been removed.
Its other RIO products, announced earlier this year, are a seven-year fixed (3.85%) and three-year fixed (3.34%), both with a £995 fee. All come with a free valuation and 40% loan-to-value (LTV) limit.
Nikki Warren-Dean, head of intermediary sales for The Nottingham for Intermediaries, said: “We have extended our range of RIO mortgages to give further choice for people in, or heading towards, retirement.”
“The introduction of our latest RIO products further highlights our desire to be there for our customer’s mortgage needs whether it’s their first or last house.”
RIO mortgages – which are available for both purchases and remortgaging – give people in later life the option to release funds, giving them more financial planning options or to enhance their retirement lifestyle.
They are without a term, interest-only, and have a minimum application age of 55. Redemption is at sale of the property following a life event such as the customer passing away, going into care or selling the house.
In case of a joint mortgage, redemption will be when both applicants reach a life event.