The Nottingham has cut rates on its trio of retirement interest-only products.

The mutual adds that it has lifted the loan-to-value lending criteria for RIO products to 50% from 40% and removed fees, previously £995, from its three-year fixed offering.

Its two-year fixed-fixed-rate loan at 50% LTV, with no fees, is now 2.75%, from 3.00%.

Its three-year fixed-rate deal at 50% LTV, with no fees, is now 3.00%, from 3.20%.

And its five-year fixed-rate offer at 50% LTV, with £995 fees, £195 upfront, is now 3.00%, from 3.30%.

The Nottingham national sales manager Deborah Reeves says: “Later life lending plays an important part in ensuring our lending options provide choice for people whatever their situation.

“So, having reduced rates on many of our residential mortgages and buy-to-let products in recent times it felt like the natural next step to reduce rates across our RIO range too.”

Last month, the lender cut rates across its 75% loan-to-value buy-to-let range, in a move that targeted first-time landlords, those aiming to increase their portfolio or landlords looking to remortgage.