Legal & General Home Finance has issued a new retirement interest-only product available exclusively through the Legal & General Mortgage Club.

Available at up to 60% LTV, the rate is set at 3.39% and charges zero fee. Overpayments of up to 10% each year can be made.

This compares to the lender’s current RIO product, with a rate of 3.55% and a £599 fee applicable.

Legal & General Home Finance chief executive Claire Singleton says: “Property wealth is increasingly being viewed as a key component of a modern retirement.

“We are constantly innovating to ensure we offer one of the broadest ranges of later life lending options, with market leading features and flexibility, allowing customers to enjoy a colourful retirement.

“I believe it is vital we work closely with advisers and our wider industry, including looking for ways to remove barriers and make transactions as easy as possible.

“I hope that by offering competitive rates and features, like our RIO offer, to Mortgage Club members we help them support their customers on their retirement journey.”