Buckinghamshire Building Society has launched a five-year fixed rate retirement interest-only mortgage product.

The five-year fixed rate RIO mortgage has a headline rate of 5.59%, up to 60% loan to value (LTV) and is available for both purchase and remortgage purposes.

A desktop valuation option is applicable for remortgage applications.

It has a minimum loan size of £50,000 with a maximum loan size of £1m and can only be offered to applicants aged 55 or over on properties located across England & Wales. Capital raising is acceptable and ERC’s, plus other fees, may be applicable.

Each case will be assessed on an individual basis and manually underwritten.

Claire Askham, head of mortgage sales at Buckinghamshire Building Society, said: “We have observed a steady rise in demand for retirement interest-only products over the past 12 to 18 months and, more recently, numerous brokers have specifically requested a fixed rate feature due to the scarcity of such options in the current market.

“In today’s changeable rate environment, there is a clear preference for more structured repayment methods, particularly among later life applicants who are often on a fixed monthly income and seek the security of stable payments.

“Addressing this need is crucial. By offering a fixed rate RIO option, we aim to provide greater financial stability and peace of mind, benefiting the right type of borrower during their retirement years.”