Leeds reduces retirement interest-only mortgage rates

A two-year fixed rate has been reduced to 2.59% and a five-year fix now starts at 3.02%, both available up to 55% LTV with a free standard valuation.

The Society’s RIO range is available through intermediaries and includes fixed rate deals for two, five, 10 and 15 years, with a choice of fee and incentive combinations. Applicants can be aged between 55 and 80.

Matt Bartle, Leeds Building Society’s director of products, commented: “Retirement interest-only is still a very new market in comparison to other types of mortgage and we expect it to continue growing.

“It offers older homeowners more choice for borrowing in later life, as an alternative to equity release so they can choose the right product for their individual needs.

“For example, some RIO borrowers will use their mortgage to fund home improvements but the product is also an option for homeowners with a maturing interest only mortgage, to refinance outstanding capital if their original repayment strategy was not sufficient.

“We know the pandemic has affected people’s finances and their future plans so it’s good that retirement interest-only is another choice for those who may be having to review how they will fund their preferred lifestyle in their later years.“