Hanley Economic Building Society has reduced rates by up to 1.24% on a pair of variable discount for term retirement interest-only (RIO) mortgages for borrowers with and without a Lasting Power of Attorney (LPA) or a Continuing Power of Attorney (CPA), as this is known in Scotland.

The variable discount for term RIO mortgage requiring an LPA/CPA has an initial pay rate of 5.20%, which represents a 3.29% discount from the Society’s standard variable rate of 8.49% and is available up to 50% LTV for purchase or remortgage purposes. This product previously had a pay rate of 6.04%, representing a 0.84% reduction.

The variable discount for term RIO mortgage which does not require an LPA/CPA has an initial pay rate of 5.30%, which represents a 3.19% discount from the Society’s standard variable rate of 8.49% and is available up to 50% LTV for purchase or remortgage purposes. This product previously had a pay rate of 6.54%, representing a 1.24% reduction.

This product pairing has no ERCs and no overpayment restrictions. In a bid to reduce upfront fees, these come with a free valuation alongside no application or arrangement fees and also benefit from a £250 cashback.

They are applicable for properties throughout England, Wales and Scotland (Scottish Islands by referral), have a minimum loan size of £10,000 and a maximum loan size of £750,000.

Each case will be assessed on an individual basis by the in-house underwriting team, meaning no credit scoring, and these products are available through the Hanley Economic Building Society branch network and selected intermediary channels.

David Lownds (pictured), head of products and marketing at Hanley Economic Building Society, said: “Over the years, market dynamics and borrowing demographics have evolved significantly, underscoring the growing importance of the later life lending sector.

“Within this, RIO mortgages provide a crucial option for older generations looking to access substantial equity for various purposes and are quickly becoming a prominent topic across the intermediary market.

“This trend is expected to continue growing in H2 2024, and these rate reductions highlight our ongoing commitment to supporting this essential group of borrowers, and intermediaries who are active in this vital sector.”