The Mansfield’s RIO mortgages is exclusively available through qualified advisers holding the CeReR or CertER qualification.
Both RIO mortgage products are available to borrowers over 55 years of age.
The lender if offering a five-year discounted variable rate of 2.83% with no early repayment charge, and a three-year fixed rate of 3.35%, with a 3% early repayment charge.
The deals come with £199 and £800 application and completion fees respectively.
The lender also allows borrowers to take additional drawings up to a maximum of 40% Loan to Value (LTV).
RIO mortgage borrowers repay the interest cost on their mortgage to ensure the mortgage debt does not increase – the capital balance of the mortgage is cleared either upon sale of the property, or when the final surviving borrower moves into long term care or dies.
Mike Taylor, head of products and savings at the Society, said The Mansfield is delighted to be launching its RIO proposition to further support borrowers in, or fast approaching, retirement.
He added: “As a mutual building society, we believe it’s important that older borrowers have choice. Our common sense, straight forward and innovative approach is designed to give later-life borrowers options to help support their lifestyle needs in retirement – we believe the access to subsequent draw-downs will prove popular with borrowers.
“Borrowers can access the equity they have built up in their home to help close family members get onto the property ladder, or use the funds to maintain their lifestyle and fulfil their retirement plans.
“In addition, provided borrowers can maintain the interest only payments going forward, our RIO mortgages can also be used to help borrowers who have an existing interest only mortgage and are unable or not yet ready, to repay the capital balance due.”
