The Mansfield latest lender to offer RIO products

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.”


Leeds Building Society cuts RIO rate

Leeds Building Society has announced a rate cut to its retirement interest-only mortgage product. Available for borrowers between 55 and 80 with up to 55 per cent LTV and a £999 fee, the five-year fixed rate has been cut from 3.74 per cent to 3.62 per cent. The building society launched its RIO product in […]


Rio and equity release “should be more aligned” say trade bodies

Speakers at the Financial Services Expo in London yesterday praised retirement interest-only mortgages but added that they should be aligned more closely with equity release options for the good of customers. Talking at a session titled “A meeting of trade body minds,” BSA head of mortgage policy Paul Broadhead said: “There’s not been a great […]

Retirement - thumbnail

Buckinghamshire Building Society introduces RIO

Buckinghamshire Building Society has launched a retirement-interest only mortgage product, available only through Legal & General Mortgage Club. The move follows RIO product launches from Scottish Building Society and Leeds Building Society after the FCA decided to reclassify RIO loans as standard mortgages, opening the offerings up to all advisers. The Buckinghamshire RIO comes in […]


Private rental demand cooling: BM Solutions

Demand from UK residential renters is flattening off, according to research from BM Solutions. The research shows that 45 per cent of landlords saw no change in demand from tenants in the second quarter compared to the first. Meanwhile, London was the only area of the UK to see a fall in demand. More than […]


Guide: reporting to the Pensions Regulator — what and when?

Johnson Fleming has published a step-by-step guide demonstrating the importance of record keeping and reporting, and how it can ensure you operate a successful scheme. The guide takes you through some key questions you need to ask and identifies the information you need to obtain. The topics include: why you need to keep records and the benefits of doing this; registering your scheme; what information you need to record to ensure you meet the Pensions Regulator’s requirements; and what items need to be recorded and when.


News and expert analysis straight to your inbox

Sign up