Hanley Economic Building Society has expanded its later life lending portfolio with the introduction of two new fixed rate retirement interest-only (RIO) mortgages, aimed at homeowners aged 55 and over.
The mutual has launched both a two-year and a five-year fixed rate option, with rates set at 5.99% and 5.79% respectively. Both are available up to 65% loan-to-value, and can be used for either purchase or remortgage. Borrowers will benefit from no application or arrangement fees, and a free valuation.
Loan amounts start at £30,000, rising to a maximum of £2 million at 50% LTV and £1.5 million at 65% LTV. Applicants must be retired and aged 55 or over, with properties eligible across England, Wales and Scotland, including the Scottish Islands by referral.
The products are offered on an interest-only basis. Each application will be manually assessed by Hanley’s in-house underwriting team, with no credit scoring involved.
The new RIO mortgages are accessible via the branch network and selected intermediary partners.
David Lownds, head of products and marketing at Hanley Economic Building Society, said the expansion came in response to sustained demand for more flexible later life lending products.
“We continue to see growing demand for accessible, flexible later life lending options,” he said. “These new RIO fixed rate products offer peace of mind and budgeting certainty, particularly for borrowers looking to manage their retirement finances carefully.
“By removing upfront costs and providing individual underwriting support, we aim to ensure that more older homeowners have the tools they need to stay in control of their property decisions.”
