The rate is fixed at 3.39 per cent until February 2023 and the maximum loan to value is 60 per cent.
The product is available to borrowers aged 55 and above who are in receipt of retirement income, with no upper age limit and no maximum term.
“We’ve seen increased appetite from advisers for more solutions in the lending-into-retirement market. Fixed rate RIOs are still relatively rare in this emerging market, therefore this competitively-priced product could offer an attractive solution to our members and their customers,” said Stephanie Harman, specialist lending relationship manager for Sesame and PMS.
Buckinghamshire BS head of leading, Tim Vigeon (pictured), said: “Over the past 12 months we’ve found RIO mortgages to be a welcome addition for intermediaries who advise their clients in retirement planning.”
Hampshire Trust Bank 30-year deal
Hampshire Trust Bank’s specialist mortgages division has introduced a 30-year interest only loan.
“We’ve extended our proposition in response to demand, so that brokers can offer their clients interest only terms of up to 30 years. We understand that most borrowers will seek refinance after the fixed term, however with this change we can give borrowers confident that they have a finance solutions in place for up to 30 years,” said Alex Upton, sales director, specialist mortgages at Hampshire Trust Bank.