The Leeds Building Society has cuts rates on two of its Retirement Interest Only (RIO) fixed rate mortgages.

The improved RIO deals are a five-year fixed rate at 3.02% and a two-year fixed rate at 2.59%.

Each is available up to 55% loan to value (LTV) and comes with a free standard valuation.

The lender’s RIO range is available through intermediaries and includes fixed rate deals for two, five, 10 and 15 years, with a choice of fee and incentive combinations. Applicants can be aged between 55 and 80.

Matt Bartle, the Leeds Building Society’s director of products, said: “Retirement Interest Only is still a very new market in comparison to other types of mortgage and we expect it to continue growing.

“It offers older homeowners more choice for borrowing in later life, as an alternative to equity release so they can choose the right product for their individual needs.

“For example, some RIO borrowers will use their mortgage to fund home improvements but the product is also an option for homeowners with a maturing interest only mortgage, to refinance outstanding capital if their original repayment strategy was not sufficient.

“We know the pandemic has affected people’s finances and their future plans so it’s good that Retirement Interest Only is another choice for those who may be having to review how they will fund their preferred lifestyle in their later years.”