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Leeds launches no fee Rio mortgage

Leeds launches no fee Rio mortgage

Leeds Building Society has launched a no fee fixed rate retirement interest-only mortgage.

The five-year product comes at a fixed rate of 3.83 per cent and is available up to 55 per cent LTV (loan-to-value).

It comes with a free standard valuation and is available for loans up to £1.25m.

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The launch follows that of the lender's 10-year Rio, which entered the market at the end of January offering a rate of 3.99 per cent up to 55 per cent LTV and 4.09 per cent up to 55 per cent LTV.

Leeds also offers two five-year Rios with fees of £999 but at lower rates of 3.62 per cent or 3.74 per cent with £500 cashback.

Matt Bartle, Leeds Building Society's director of products, said: "We continue to use our experience and expertise within the interest only market to refine and improve our retirement interest-only offering.

"Our new product is the only no fee fixed rate retirement interest-only mortgage available in the market and follows hot on the heels of the introduction of our market-first 10-year product.

"We continually keep our mortgage range under review and these products are the latest examples of our commitment to offering more choice to consumers, particularly those less well served by the wider market."

A retirement interest-only mortgage is repaid when a specified life event occurs, such as moving into residential care, or the death of the borrower.

Leeds was one of the first high street lenders to enter this market in July 2018.

The lender will consider income drawdown plans and self-invested personal pensions when assessing income for applications.