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Leeds Building Society cuts RIO rate

Leeds Building Society has announced a rate cut to its retirement interest-only mortgage product.

Available for borrowers between 55 and 80 with up to 55 per cent LTV and a £999 fee, the five-year fixed rate has been cut from 3.74 per cent to 3.62 per cent.

The building society launched its RIO product in late July, following the FCA’s decision to reclassify RIO loans as a standard mortgage. Scottish BS announced its own RIO product on the same day and Buckinghamshire subsequently brought out its own version in August.

Leeds Building Society director of product and distribution Jaedon Green says: “The needs of homeowners evolve and change and we expected to see continued interest in this new proposition.

“A positive response to our launch from consumers has confirmed our own research that suggested an unmet demand, which we are able to meet through our partner brokers.

“The increasing number of brokers accredited to advise on retirement interest only improves accessibility for consumers and so we have reduced our five-year fixed rate… making it one of the leading rates in the market currently.”

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