Leeds launches no fee fixed rate RIO mortgage

Michael Lloyd

February 11, 2019

Leeds Building Society has launched a no fee fixed rate retirement interest-only mortgage.

The new no fee 5-year 3.83% fixed rate is available up to 55% LTV and comes with a free standard valuation.

Matt Bartle, director of product at Leeds Building Society, said: “We continue to use our experience and expertise within the interest only market to refine and improve our retirement interest-only offering.

“Our new product is the only no fee fixed rate Retirement Interest Only mortgage available in the market and follows hot on the heels of the introduction of our market-first 10 year product.

“We continually keep our mortgage range under review and these products are the latest examples of our commitment to offering more choice to consumers, particularly those less well served by the wider market.”

This follows the launch this month of the society’s 10-year retirement interest-only product, which remains the only 10-year product in the market.

Other longer-term fixed rate products in Leeds Building Society’s retirement interest-only range include four fixed rate mortgages, each available up to 55% LTV with a £999 product fee.

There’s a 3.62% 5-year fix, a 3.74% 5-year fix with a £500 cashback, a 3.99% 10-year fix and a 4.09% 10-year fix with a £500 cashback.

The society was the first national high street lender to enter this new market in July 2018.

It has also enhanced lending criteria since launching, enabling income drawdown plans and self-invested personal pensions (SIPPs) to be considered when assessing income for applications.

A retirement interest-only mortgage will be repaid when a specified life event occurs, usually moving into residential care, or the death of the borrower.

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