Leeds launches first fee-free RIO mortgage with cashback

The new RIO mortgages with £500 cashback include a two-year fixed rate at 3.94% with a discounted rate for the following three years, a 3.99% five-year fix and a 4.24% 10-year fixed rate.

Each is available up to 55% LTV and comes with a free standard valuation.

Matt Bartle, director of products at Leeds Building Society, said: “Retirement interest-only is still new and very much a developing market since coming into existence last year.

“For that reason we continue to refine and build on our proposition as we learn more about the needs of this group of borrowers.

“We did a lot of research before we began this type of later life lending but the market was totally untested so remaining responsive to feedback is really important to us in shaping our range as demand continues to grow.

“Cashback is favoured by borrowers with smaller home loans so we’re now launching fee-free options to give borrowers even more choice.”