Saffron cuts retirement interest-only rates and fees

Highlights of the new range includes three-year discount rates from 3.14% with a Power of Attorney in place or 3.44% without, both with a £499 fee.

Three-year fixed rates are also available from 3.67%, or 3.37% with a Power of Attorney, with a £999 product fee.

All products are available up to 50% LTV on a maximum loan size of £1m.

Anita Arch, Head of Mortgage Sales at Saffron Building Society said: “We continually review the market to see where new opportunities are emerging for our broker partners. The retirement sector is definitely one area to keep an eye on in terms of new selling opportunities – as such we have redefined our RIO mortgage range to accommodate the increasing demand in this specialist area.

"Many consumers don’t think it’s possible to obtain a mortgage in retirement let alone get one that can help fund a lifestyle. People are living longer and are expecting to maintain a certain standard of living during this time. One of the key benefits associated with our RIO products is the opportunity for customers to utilise the capital linked to homeownership providing a popular way for them to finance living in later life.

"We will be pleased to speak with our broker partners to outline in more detail the growth opportunities in the retirement mortgage market.”