Mansfield Building Society has become the latest lender to enter the retirement interest-only market.
The lender has introduced two RIO products that allow borrowers to take subsequent additional draw-downs of up to 40 per cent.
In March, the Financial Conduct Authority reclassified retirement interest-only mortgages as standard mortgages, rather than lifetime mortgages or equity release plans. As a result, the sale of these mortgages does not have to be advised.
However, The Mansfield’s RIO mortgages are exclusively available through qualified advisers holding the CeReR or CertER qualification.
The products are available to borrowers over 55 years old and include 5-year variable rates at 2.83 per cent with fees of £999 and no ERC and a 3-year fix at 3.35 per cent with the same fees and a 3 per cent ERC.
The Mansfield head of products and savings Mike Taylor says: “As a mutual building society, we believe it’s important that older borrowers have choice. Our common sense, straight forward and innovative approach is designed to give later-life borrowers options to help support their lifestyle needs in retirement – we believe the access to subsequent draw-downs will prove popular with borrowers.”