Leeds Building Society has launched three Retirement Interest-Only (RIO) mortgages with £500 cashback and no product fee.
These products are a 2-year fixed rate, with a discounted rate for the following three years, at 3.94%, a 5-year fix at 3.99% and a 10-year fix priced at 4.24%.
Each is available up to 55% loan-to-value (LTV) and comes with a free standard valuation.
Matt Bartle, director of products at Leeds Building Society, said: “Retirement Interest-Only is still new and very much a developing market since coming into existence last year.
“For that reason, we continue to refine and build on our proposition as we learn more about the needs of this group of borrowers.
“We did a lot of research before we began this type of later life lending, but the market was totally untested so remaining responsive to feedback is really important to us in shaping our range as demand continues to grow.
“Cashback is favoured by borrowers with smaller home loans so we’re now launching fee-free options to give borrowers even more choice.”
The society accepts RIO applications from borrowers aged between 55 and 80.