This includes a two-year fix priced at 5.99% up to 65% loan to value (LTV). There is also a five-year fix with a rate of 5.79%, also up to 65% LTV.
The products have no application or arrangement fees, which Hanley Economic Building Society said would reduce upfront costs.
The RIOs are available on an interest-only basis for purchase and remortgage, with loans ranging from £30,000 to £2m at 50% LTV to up to £1.5m at 65% LTV. The range is open to borrowers who are retired and aged 55 or over, and the mutual will lend across properties in England, Wales and Scotland, as well as the Scottish Islands on a referral basis.
Each case will be assessed on an individual basis with no credit scoring.
David Lownds (pictured), head of products and marketing at Hanley Economic Building Society, said: “We continue to see growing demand for accessible, flexible later life lending options. These new RIO fixed rate products offer peace of mind and budgeting certainty, particularly for borrowers looking to manage their retirement finances carefully.
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“By removing upfront costs and providing individual underwriting support, we aim to ensure that more older homeowners have the tools they need to stay in control of their property decisions.”
Earlier this year, the firm unveiled a 100% LTV Rent to Own mortgage.
