Saffron Building Society has added new mortgage products to its retirement interest only (RIO) offering, including new fixed rate options and reduced rates on existing RIO products.

Furthermore, the lender has reduced its fees across the range.

According to Saffron, the introduction of these improvement will provide retired homeowners further opportunity to stay in their homes for longer or unlock the value of their properties and in turn freeing up cash to enable wider lifestyle opportunities.

The building society is offering 3.14 per cent (SVR of 2.5 per cent) up to 50 per cent LTV with a power of attorney (POA) in place, or 3.44 per cent (SVR of 2.2 per cent) without one. The arrangement fee for this product is £499 and the early repayment fee is 3 per cent for 3 years. The minimum amount borrowed is £30,000 and the maximum is £1m.

It is also offering a 3.37 per cent on a 50 per cent LTV with a POA (3.67 per cent without a POA) with an arrangement fee of £999. The minimum and maximum loan amounts are £30,000 and £1m, respectively.

Saffron Building Society head of mortgage sales Anita Arch said: “We continually review the market to see where new opportunities are emerging for our broker partners. The retirement sector is definitely one area to keep an eye on in terms of new selling opportunities – as such we have redefined our RIO mortgage range to accommodate the increasing demand in this specialist area.

“Many consumers don’t think it’s possible to obtain a mortgage in retirement let alone get one that can help fund a lifestyle. People are living longer and are expecting to maintain a certain standard of living during this time. One of the key benefits associated with our RIO products is the opportunity for customers to utilise the capital linked to homeownership providing a popular way for them to finance living in later life.”

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