Hanley Economic Building Society has launched a no fee medium-term fixed rate retirement interest-only (RIO) mortgage with no ERCs and no overpayment restrictions.

The lender said the product is to help support borrowers and intermediaries in their later life lending requirements.

It comes with a headline rate of 5.55% and is available up to 65% loan to value (LTV) for purchase and remortgage purposes.

The product, which matures on 30 November 2028, has a minimum loan size of £10,000 with a maximum loan size of £500,000.

It can only be offered to applicants who are already retired and aged 55 or over.

In a bid to reduce upfront fees, this also includes a free valuation alongside no application or arrangement fees and is applicable for properties throughout England, Wales and Scotland (Scottish Islands by referral).

The lender said each case will be assessed on an individual basis by the in-house underwriting team, meaning no credit scoring.

The product is available through the Hanley Economic Building Society branch network and selected intermediary channels.

Hanley Economic Building Society head of products and marketing David Lownds said: “RIO mortgages provide an important option for older generations who are looking to utilise significant amounts of equity for a variety of purposes and we hope that our no fee, no ERC fixed rate product will prove to be an appropriate choice for those looking to fulfil a better retirement or to help loved ones onto and up the property ladder.”