Leeds launches first fee-free RIO mortgage with cashback
Leeds Building Society has launched the first retirement interest-only (RIO) mortgages with cashback and no product fee.
"The market was totally untested so remaining responsive to feedback is really important to us in shaping our range as demand continues to grow."
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.”
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
Budget
Budget: Government introduces mansion tax on high-value homes
Budget
Budget: Government introduces £2,000 salary sacrifice cap
Lifetime Isa
Budget: Lifetime ISA to be scrapped in favour of new first-time buyer ISA
Budget
Budget: Property income tax to rise by 2%
FCA
Firms required to report complaints involving vulnerable customers under simplified FCA rules
Santander
Santander joins mortgage price war with new rates from 3.51%
