10-year RIO mortgage launched by Nottingham Building Society
Nottingham Building Society has launched a Retirement Interest-Only mortgage fixed at 3.95% for 10 years.
The long-term fixed rate, which replaces the lender’s seven-year fixed product, comes with a free valuation and £995 fee.
Nikki Warren-Dean, spokesperson for The Nottingham for Intermediaries, said: “We added Retirement Interest-Only mortgages to our offering just six months ago and have already twice refreshed the range to ensure we are giving as much choice as possible for people in, or heading towards, retirement.
“The Nottingham is dedicated to helping people achieve their first property or move up the ladder, but also to supporting those who may be living in their last home too.”
The Nottingham’s current range of RIO mortgages includes:
- A fee-free two-year discounted rate (2.75% off variable mortgage rate), 2.99%
- A fee-free two-year fixed rate, 3.40%
- A fee-free three-year fixed rate, 3.42%
- A five-year fixed rate, 3.55%. with a £995 fee
- A 10-year fixed rate, 3.95%. with a £995 fee.
What are RIO mortgages?
Retirement Interest-Only mortgages are available for both purchases and remortgaging from Nottingham Building Society. The products give people in later life the option to release funds locked up in their property.
They are interest-only, without a term, and have a minimum application age of 55. The mortgage is repaid on the sale of the property on the borrower’s death or if they move into long-term care. In the case of a joint mortgage, redemption will be when both applicants reach such a life event.