Newbury Building Society enters RIO market

Newbury Building Society has launched its first retirement interest-only product.

The  new product offering is restricted to applicants over 60 and has no maximum age limit and comes with free standard mortgage valuation for properties up to £1m.

Free for remortgages and overpayments are also available.

Newbury Building Society lending manager Roger Knight says: “As a mutual, we listened to our members who expressed a need for a RIO mortgage.

“People are living for longer and therefore, as a lender, it is our responsibility to ensure we are offering the right products at the right time.

“We hope our RIO five-year discount variable mortgage product ticks all the correct boxes and enables borrowers to fulfil their retirement ambition.”

The Newbury’s entry into the market comes after a number of lenders — including  including Nationwide and Hanley Economic Building Society — launched RIO offerings at the back end of last year.

The FCA reclassified interest-only mortgages from lifetime mortgages or equity release plans to standard mortgages in March.

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