The Nottingham has further evidenced its commitment to later life lending by introducing a Retirement Interest Only mortgage fixed at 3.95% for ten years.
Its latest offering, which replaces the previous seven-year fixed product, comes with a free valuation and £995 fee.
The ten-year product has been added to a RIO range that includes shorter fixed term products with no fees, meaning choice for borrowers depending on their circumstances.
Nikki Warren-Dean, Head of Intermediary Sales for The Nottingham for Intermediaries, explained how the society continues to grow and reward its members with products built around them and maintains its desire to listen to, and act on, broker feedback.
She said: “We added Retirement Interest Only mortgages to our offering just six months ago and have already twice refreshed the range to ensure we are giving as much choice as possible for people in, or heading towards, retirement.
“The Nottingham is dedicated to helping people achieve their first property or move up the ladder, but also to supporting those who may be living in their last home too.
“Taking that into account, and broker feedback, is why we decided to introduce a ten-year fixed rate RIO product to our mortgage range – to ensure we are well positioned to help people make the right decisions to suit their circumstances.”
The Nottingham’s current range of RIO mortgages (all with a 40% Loan To Value limit and all with a free valuation):
- Two-year discount (2.75% off variable mortgage rate), 2.99%. No fees.
- Two-year fixed, 3.40%. No fees.
- Three-year fixed, 3.42%. No fees.
- Five-year fixed, 3.55%. £995 fee.
- Ten-year fixed, 3.95%. £995 fee.
RIO mortgages – which are available for both purchases and remortgaging – give people in later life the option to release funds, giving them more financial planning options or to enhance their retirement lifestyle.
They are interest-only, without a term, and have a minimum application age of 55. Redemption is at sale of the property following a life event such as the customer sadly passing away, going into care or selling the house. In the case of a joint mortgage, redemption will be when both applicants reach a life event.