Buckinghamshire Building Society has launched a 5-year fixed rate retirement interest-only (RIO) mortgage product, following intermediary feedback.
The 5-year fixed rate RIO mortgage has a headline rate of 5.59%, up to 60% loan-to-value (LTV) and is available for both purchase and remortgage purposes.
The desktop valuation option is only applicable for remortgage applications.
It has a minimum loan size of £50,000 with a maximum loan size of £1m and can only be offered to applicants aged 55 or over on properties located across England & Wales.
Capital raising is acceptable and Early Repayment Charges (ERCs), plus other fees, may be applicable.
Claire Askham (pictured), head of mortgage sales at Buckinghamshire Building Society, said: “We have observed a steady rise in demand for retirement interest-only products over the past 12 to 18 months and, more recently, numerous brokers have specifically requested a fixed rate feature due to the scarcity of such options in the current market.
“In today’s changeable rate environment, there is a clear preference for more structured repayment methods, particularly among later life applicants who are often on a fixed monthly income and seek the security of stable payments.
“Addressing this need is crucial. By offering a fixed rate RIO option, we aim to provide greater financial stability and peace of mind, benefiting the right type of borrower during their retirement years.”
