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The Nottingham Reduces Retirement Interest-Only Rates

The Nottingham has announced rate cuts to its trio of retirement interest-only (RIO) products.

Earlier this week the building society reduced rates on its five-year fixed Limited Company buy-to-lets, and now later life lending is seeing product changes too.

The new rates (see below) come as The Nottingham also reveals it has increased the loan-to-value lending criteria for RIO products to 50 per cent from 40 per cent and removed fees (previously £995) from its three-year fixed offering.

· Two-year fixed 50 per cent LTV with no fees, 2.75 per cent (was 3.00 per cent)

· Three-year fixed 50 per cent LTV with no fees, 3.00 per cent (from 3.20 per cent)

· Five-year fixed 50 per cent LTV with £995 fees (£195 upfront), 3.00 per cent (was 3.30 per cent)

Deborah Reeves, national sales manager for The Nottingham, said: “Later life lending plays an important part in ensuring our lending options provide choice for people whatever their situation. So, having reduced rates on many of our residential mortgages and buy-to-let products in recent times it felt like the natural next step to reduce rates across our RIO range too.”