Nationwide pilots RIO launch
Nationwide Building Society has started offering retirement interest-only (RIO) mortgages to some of its existing members.
This will proceed a full launch later this financial year.
It is available to existing mortgage members over the age of 55, in receipt of retirement income and looking to complete a term extension, a change in repayment, or a rate switch with a term extension and/or repayment method change.
Henry Jordan, director of mortgages, said: “Nationwide remains committed to our ongoing plan to address the needs of a changing and ageing population in later life, and to evolve and initiate products to support people in or approaching retirement.
“We are pleased that the FCA has acted to amend mortgage regulation to allow the development of retirement interest-only products, which supports our aspiration to bring increased innovation in this area.
“Our first step is to help existing mortgage members with particular borrowing needs to begin to access our newly developed retirement interest-only mortgage product, ahead of our planned full RIO mortgage offering going live later in the financial year.
“It is also being designed to complement Nationwide’s other later life mortgage products to provide additional options for this age group.”
Dedicated Nationwide specialist mortgage consultants will handle RIO cases.
The society launched a lifetime mortgage last week.