The Nottingham has cut rates on its three retirement interest-only (RIO) products.

A two-year fixed rate is down from 3.00% to 2.75%, a three-year fixed rate is down from 3.20% to 3.00%, while a five-year fix is also down to 3.00% having previously been 3.30%. Each product is offered at 50% LTV.

The new rates come as the society also revealed it has increased the LTV lending criteria for RIO products to 50% from 40%, and removed fees that were previously £995 from its three-year fixed offering.

Earlier this week, The Nottingham reduced rates on its five-year fixed limited company buy-to-lets, and now later life lending is seeing product changes too.

“Later life lending plays an important part in ensuring our lending options provide choice for people whatever their situation,” The Nottingham national sales manager, Deborah Reeves, commented.

“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.”

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