The society has also reduced the rate on its fee-free 95% LTV residential two-year fixed rate product by 0.12%.

The two-year fixed rate RIO mortgage has a headline rate of 5.29%, available up to 65% LTV. This includes a free valuation, no application fee, an arrangement fee of £250 – deducted from the loan on completion – and no overpayment restrictions.

The product comes with a minimum loan size of £30,000 and a maximum loan size of £2m at 50% LTV and £1.5m at 65% LTV. It can be used for purchase and remortgage purposes and is only valid for applicants who are already retired and aged 55 or over.

The society has further enhanced its higher LTV residential offering through a rate reduction of 0.12% on its fee-free 95% LTV two-year fixed rate product. This now has a headline rate of 5.45% – previously 5.57%.

In a bid to reduce upfront fees, this includes a free valuation, no application or arrangement fees, and £250 cashback paid on completion of the mortgage.

It has a minimum loan size of £30,000, a maximum loan size of £500,000, and is available for purchase and remortgage purposes.

Hanley Economic head of products and marketing David Lownds commented: “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.”