The product features a headline rate of 5.55% at 65% LTV
Hanley Economic Building Society has launched a new no-fee, medium-term fixed rate retirement interest-only (RIO) mortgage designed to cater to the needs of borrowers and intermediaries navigating later life lending.
The product, featuring a headline rate of 5.55%, extends up to 65% loan-to-value (LTV) for both purchase and remortgage purposes, with a maturity date set for November 30, 2028.
With a minimum loan size of £10,000 and a maximum of £500,000, the mortgage targets retired individuals aged 55 and above. It has no early repayment charges (ERCs) and overpayment restrictions.
The offering also includes a complimentary valuation and eliminates application or arrangement fees. The product is applicable for properties across England, Wales, and Scotland, with an exception for Scottish Islands, which necessitates referral.
“As a society, we remain committed to servicing the needs of borrowers from the beginning of their homeownership journey right through to the end of their lending cycle,” David Lownds (pictured), head of products and marketing at Hanley Economic Building Society, stated. “Over the years, market dynamics and borrowing demographics have changed significantly to emphasise the growing importance attached to the later life lending sector, and this dependence is only likely to grow in 2024.
“RIO mortgages provide an important option for older generations who are looking to utilise significant amounts of equity for a variety of purposes, and we hope that our no-fee, no-ERC fixed rate product will prove to be an appropriate choice for those looking to fulfil a better retirement or to help loved ones on to and up the property ladder.”
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