Hanley Economic launches fee-free RIO mortgage with no ERCs

Hanley Economic Building Society has launched a medium-term fixed rate retirement interest-only (RIO) mortgage with no fees or ERCs and no overpayment restrictions.

The product, which comes with a headline rate of 5.55%, is available up to 65% LTV for purchase and remortgage purposes and matures on 30 November 2028. It has a minimum loan size of £10,000 with a maximum loan size of £500,000 and can only be offered to applicants who are already retired and aged 55 or over.

In a bid to reduce upfront fees, this also includes a free valuation alongside no application or arrangement fees and is applicable for properties throughout England, Wales and Scotland (Scottish Islands by referral).

Each case will be assessed on an individual basis by the in-house underwriting team, meaning no credit scoring.

David Lownds, head of products and marketing at Hanley Economic Building Society, commented: “As a society, we remain committed to servicing the needs of borrowers from the beginning of their homeownership journey right through to the end of their lending cycle. Over the years, market dynamics and borrowing demographics have changed significantly to emphasise the growing importance attached to the later life lending sector and this dependence is only likely to grow in 2024.

“RIO mortgages provide an important option for older generations who are looking to utilise significant amounts of equity for a variety of purposes and we hope that our no fee, no ERC fixed rate product will prove to be an appropriate choice for those looking to fulfil a better retirement or to help loved ones onto and up the property ladder.”