Newbury Building Society has launched its first retirement interest-only (RIO) mortgage, a 5-year discount at 3.45% with a 50% LTV.
To be eligible for the variable mortgage product, applicants must be a minimum age of 60 years old. There is no maximum age but borrowers must be retired and in receipt of their pension.
Roger Knight, lending manager at Newbury Building Society, said: “As a mutual, we listened to our members who expressed a need for a RIO mortgage.
“People are living for longer and therefore, as a lender, it is our responsibility to ensure we are offering the right products at the right time. We hope our RIO 5-year discount variable mortgage product ticks all the correct boxes and enables borrowers to fulfil their retirement ambition.”
The society will offer a free standard mortgage valuation for properties valued up to £1m, offer free legal for remortgages, and accept mortgage overpayments.
The mortgage product is interest-only and is suitable for those who do not want to downsize their property and wish to remain in their home. The launch follows the recent increase to the society’s upper age limit for mortgage lending, which now stands at 90 years.
Existing borrowers of Newbury Building Society can also transfer onto the product to borrow additional funds.