Legal & General Home Finance has introduced a retirement interest-only (RIO) product, available exclusively through Legal & General Mortgage Club.
Legal & General Home Finance’s current RIO option is available to the market at 3.55%, up to a maximum of 60% loan-to-value (LTV) and with a product fee of £599.
However, Legal & General Mortgage Club members will now be able to access the exclusive RIO with a rate set at 3.39% and no product fee.
Legal & General Home Finance’s product also comes with a range of other features, including the ability to make overpayments of up to 10% each year and a stepped percentage early repayment charge.
Danny Belton, head of lender relationships at Legal & General Mortgage Club, said: “We’re delighted to extend the range of later life lending options to Mortgage Club members with this exclusive product from Legal & General Home Finance.
“Britain’s borrowers are increasingly entering retirement with mortgage debt and a growing number of these consumers are seeking options such as lifetime mortgages and retirement interest only solutions.
“At Legal & General Mortgage Club, we’re working together with later life lenders including our colleagues at Legal & General Home Finance to give our members access to a competitive range of products that enable their clients to live their best retirement.”
Claire Singleton, chief executive officer at Legal & General Home Finance, added: “Property wealth is increasingly being viewed as a key component of a modern retirement.
“At Legal & General, we are constantly innovating to ensure we offer one of the broadest ranges of later life lending options, with market leading features and flexibility, allowing customers to enjoy a colourful retirement.
“We focus on giving customers the best outcome we can and aim to look after them for the lifetime of their loan – not just the point of sale.
“Our RIO mortgage is fixed for life, so borrowers can lock into a very competitive rate for the long-term, giving them peace of mind and security in their later years.
“I believe it is vital we work closely with advisers and our wider industry, including looking for ways to remove barriers and make transactions as easy as possible.
“I hope that by offering competitive rates and features, like our RIO offer, to mortgage club members we help them support their customers on their retirement journey.”