Cambridge Building Society has announced the launch of its first retirement interest-only mortgage product.
The later life lending offering is set at 55 per cent LTV with a rate of 3.39 per cent. The product has no set term, a £500 fee, and offers free valuations.
The building society adds that this deal is available exclusively through its direct lending channel.
Cambridge Building Society product manager Dan Barker says: “With an increase in the number of older households and rising house prices resulting in higher mortgage values, we recognise that there is a growing need in this segment for a mortgage to help those who would like to unlock the value in their property to fund their retirement or support their loved ones.”
This decision follows on from Beverley Building Society, which launched its first RIO offering in March this year; Ipswich Building Society and Nottingham Building Society also announced its first RIO products earlier this year.