Hanley Economic Building Society has launched a two-year fixed retirement interest-only (RIO) product and cut the rate of a low-deposit mortgage.
The RIO is available at 65% loan to value (LTV) and has a rate of 5.29%. There is no application fee, a free valuation and an arrangement fee of £250, which is deducted from the loan on completion. There are also no restrictions on overpayments, which Hanley Economic Building Society said would help borrowers with later life lending requirements.
The RIO has a minimum loan size of £30,000 up to £2m at 50% LTV or £1.5m at 65% LTV. It can be used for purchase and remortgage and is available to retired applicants aged 55 and over.
Elsewhere, the mutual’s fee-free two-year fixed rate at 95% LTV has been reduced by 0.12% to 5.45%.
This has no upfront fees, a free valuation and no application or arrangement fees. There is £250 cashback incentive paid back on completion of the mortgage.
Loan sizes range from £30,000 to £500,000 and the product is available for purchase and remortgage.
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Across both products, applications will be assessed on an individual basis with no credit scoring.
David Lownds, head of products and marketing at Hanley Economic Building Society, said: “We are committed to supporting borrowers at all stages of their homeownership journey, whether they are purchasing their first property, moving up the ladder, or looking for later life lending solutions.
“The introduction of our two-year fixed rate RIO mortgage provides greater certainty for retirees looking to manage their finances effectively, while the rate reduction on our fee-free 95% LTV product ensures we continue to offer competitive short- and medium-term options for those borrowers with smaller deposits.
“These enhancements reaffirm our dedication to delivering flexible, accessible mortgage solutions that meet the ever-evolving needs of our customers.”
Market Harborough BS lowers SVR
Market Harborough Building Society has reduced its standard variable rate (SVR) by 0.2% to 7.79%, effective from 1 March.
The change will see its residential and let discount mortgage rates also cut by 0.2%, meaning its residential, buy-to-let (BTL), holiday let and expat ranges will benefit.
This will not apply to fixed or bridging finance rates.
For residential tier one cases up to 75% LTV with a £1,495 fee, the fixed rate will start at 5.29%, while the variable rate will begin from 5.64%.
For BTL tier one cases up to 75% LTV, including top slicing and lending into retirement, the fixed rate will start from 5.55% and the variable rate from 5.9%.
Iain Smith, head of mortgage distribution at Market Harborough Building Society, said: “Our promise to be best for brokers remains as firm as ever, and we’re always looking for ways to make it even easier for brokers to place their cases.
“These latest reductions will make our range of specialist lending solutions for loans up to £5m even more accessible for clients wanting flexibility, including our range of lifetime discounts.”
This comes after the Bank of England cut the base rate by 0.25% to 4.5% earlier this month.
