The Nottingham has made rate cuts to its three retirement interest-only (RIO) products.

It has also increased the loan to value lending criteria for RIO products to 50% from 40% and removed fees (previously £995) from its three-year fixed offering.

The new deals are as follows:

• Two-year fixed 50% LTV with no fees, 2.75% (was 3.00%)
• Three-year fixed 50% LTV with no fees, 3.00% (from 3.20%)
• Five-year fixed 50% LTV with £995 fees (£195 upfront), 3.00% (was 3.30%)

Deborah Reeves, The Nottingham’s national sales manager, said: “Later life lending plays an important part in ensuring our lending options provide choice for people whatever their situation.

“So, having reduced rates on many of our residential mortgages and buy-to-let products in recent times it felt like the natural next step to reduce rates across our RIO range too.”