Mansfield Building Society has raised the maximum loan-to-value for borrowers over 65 years old using its Retirement Interest Only (RIO) products.
The society’s 5-year discounted rate and 3-year fixed rate RIO mortgages are now being offered up to 55% LTV.
Products are also available to 40% LTV for those aged between 55 and 65.
Paul Lewis, national development manager at The Mansfield, said: “We launched our RIO range last year with a maximum of 40% LTV for all and, following conversations with our broking partners and borrowers, have now decided to raise this to 55% for borrowers over 65.
“By allowing borrowers to take additional drawdowns when needed, we believe our products provide added flexibility, enabling borrowers to remain in control of their finances over the longer term.
“This area of later life lending is clearly growing, and we will continue to work actively in this space, developing mortgage solutions that meet real life circumstances and borrowers’ evolving needs in later-life.”
Both mortgages allow additional drawdowns after the initial loan has been advanced, enabling borrowers to take the equity they need and providing flexibility so that – as long as they remain within the overall maximum LTV – they can take out more at a later date.
RIO mortgage borrowers repay the interest on the mortgage to ensure the mortgage debt does not increase – the capital balance of the mortgage is cleared either upon sale of the property, or when the final surviving borrower moves into long-term care or dies.
Access to The Mansfield’s RIO mortgages is only available through qualified advisers holding the CeReR or CertER qualification.