Nationwide has announced the soft launch of a retirement interest-only mortgage product.
The RIO will initially be available only to a select number of existing mortgage members over 55 who are receiving retirement income and looking to make specific changes to their mortgage plan ahead of a full launch later in the financial year.
The building society says that the FCA’s decision to reclassify RIO loans as a standard product chimes with its aim to bring more innovation to the later life lending market, in which Nationwide already offer equity release and “Borrowing in Retirement” products.
Of the soft rollout, Nationwide director of mortgages Henry Jordan comments: “Nationwide remains committed to our ongoing plan to address the needs of a changing and ageing population in later life, and to evolve and initiate products to support people in or approaching retirement.
“Our first step is to help existing mortgage members with particular borrowing needs to begin to access our newly developed Retirement Interest Only mortgage product, ahead of our planned full RIO mortgage offering going live later in the financial year.
“It is also being designed to complement Nationwide’s other later life mortgage products to provide additional options for this age group.”