Beverley Building Society has brought out a retirement interest-only (RIO) lifetime discount mortgage in response to market demand.
The product offers a lifetime discounted rate and has no early repayment charges, which the mutual said differed from other RIO mortgages with a discounted term. Beverley Building Society said borrowers were able to repay when it suited them.
Further, affordability is assessed on a joint-life basis instead of just one party.
The minimum age for the product is 55 and the mutual will allow up to two borrowers for each application. It will lend up to 65% loan to value (LTV) at a minimum property value of £125,000.
Kat Kitson, head of member experience at Beverley Building Society, said: “Our new RIO lifetime discount mortgage reflects the Beverley’s commitment to giving later life borrowers more flexibility, more certainty, and a more human approach to lending. By assessing affordability on a joint‑life basis, we’re opening the door for more couples to secure the stable, long‑term payment plan they need.
“At a time when the later life market is evolving quickly, we’re proud to offer a product that puts fairness, flexibility and individual understanding at its core.
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