Leeds Building Society has released a no-fee fixe rate retirement interest-only mortgage, which the lender says is the only such offering on the market.
The mortgage is fixed for five years at 3.83 per cent on up to 55 per cent LTV and comes with a free standard valuation.
It is available for purchase and remortgages and features tapered early repayment charges that decrease to 2 per cent by 2024. The maximum loan comes in at £1.25m.
At the end of last month, Leeds launched a ten-year RIO, set at 3.99 per cent. It commands a £999 product fee.
Leeds Building Society director of products Matt Bartle says: “We continually keep our mortgage range under review and these products are the latest examples of our commitment to offering more choice to consumers, particularly those less well served by the wider market.”