Buckinghamshire Building Society has launched a five-year fixed rate retirement interest-only mortgage product.

The five-year fixed rate RIO mortgage has a headline rate of 5.59%, up to 60% loan-to-value and is available for both purchase and remortgage purposes. Although, the desktop valuation option is only applicable for remortgage applications.

There is a minimum loan size of £50,000 with a maximum loan size of £1m and the product is offered to applicants aged 55 or over on properties located across England and Wales.

Capital raising is acceptable and early repayment charges plus other fees, may be applicable.

Commenting on the launch Buckinghamshire head of mortgage sales Claire Askham said: “We have observed a steady rise in demand for retirement interest-only products over the past 12 to 18 months and, more recently, numerous brokers have specifically requested a fixed rate feature due to the scarcity of such options in the current market.”

She added: “In today’s changeable rate environment, there is a clear preference for more structured repayment methods, particularly among later life applicants who are often on a fixed monthly income and seek the security of stable payments. “