Leeds Building Society has added a ten year retirement interest-only deal to its mortgage range.
The society was the first national high street lender to enter the market following the FCA’s reclassification of RIOs as standard mortgages.
It previously offered five-year fixed terms but has now added two ten-year options to its offering, at 3.99 per cent up to 55 per cent LTV and at 4.09 per cent, also up to 55 per cent LTV and with £500 cashback.
Leeds Building Society’s director of products Matt Bartle says: “We drew on our experience within the interest-only market to become the first national high street lender to launch retirement interest-only products in July. Since then, we have further enhanced our expertise in this area and know from our own research and market trends that consumers are increasingly looking for longer-term products.
“As a result we’ve introduced two new ten year RIO mortgages, one with a cashback option, to ensure we continue to offer choice to consumers and help meet the needs of their own individual circumstances.
The lender is also introducing criteria changes to its RIO offering, enabling income drawdown plans and self-invested personal pensions to be considered when assessing income for applications.
Bartle says: “We regularly keep our mortgage criteria under review to meet the needs of those often under served by the market.
“The consideration of appropriate drawdown plans and SIPPs during the affordability assessment is another example of providing increased flexibility for those looking at Retirement Interest Only mortgages as an option.
“Choosing a mortgage is always a highly personal decision and everyone’s individual circumstances and priorities are different, so it’s important consumers take appropriate advice via brokers.”