Leeds BS launches 15-year fixed rate mortgage

The Society says nearly 70% of its applicants are seeking a fixed term of at least five years and nearly one in six (17%) of its RIO mortgages is a 10-year fixed rate.

Leeds accepts RIO applications from borrowers aged between 55 and 80 and each ortgage is available for purchase or remortgage applications, has no product fee and no maximum term.

Leeds Building Society was the first national high street lender to enter the retirement interest-only market and was also the first provider to introduce five and 10-year fixed rate RIO mortgages.

Matt Bartle, Leeds Building Society’s director of products, said: “While retirement interest-only was a completely new market, guidance from the regulator and our own extensive research led us to expect strong demand.

“Bearing in mind the UK’s demographic and the changes to how people are managing their financial commitments during later life, we anticipate the demand for retirement interest-only will carry on increasing as older borrowers seek greater choice, alongside more established options such as equity release and lifetime mortgages.

“The last 12 months bears this out and we’ll keep our product offering and lending criteria under review so we can support more borrowers wanting to make use of this type of home loan."