Leeds Building Society has made rate reductions on two of its retirement interest-only (Rio) products.

They comprise the 55% LTV five-year fix, which has been cut from 3.34% to 3.02% and the five-year fix with £500 cashback, which has gone from 3.82% to 3.49%.

Both mortgages come with a free standard valuation.

Leeds director of products Matt Bartle says: “Rio is still a very new market in comparison to other types of mortgages and we expect it to continue growing.

“We know the pandemic has affected people’s finances and their future plans so it’s good that Rio is another choice for those who may be having to review how they will fund their preferred lifestyle in their later years.”

In May this year, Moneyfacts announced that the highest number of providers recorded were providing Rio mortgages – 22, up from 18 in February 2020.