Mortgages with no end date, set term or upper age limit
Our new Retirement Interest Only (RIO) mortgages offer older borrowers the flexibility of having no standard means to repay the mortgage, with payments made until the borrower dies or moves into permanent long term care, at which point the loan is repaid.
Our RIO mortgages will fit the needs of many borrowers, offering a lifeline to those on an interest-only mortgage which is coming to an end without a standard repayment vehicle in place as well as anyone looking to purchase in or around retirement.
Borrowers can use the sale of their home as their repayment strategy provided they have a minimum of 40% equity in their property. And if they wish to gift some equity to a family member or want to give their home a face-lift with some worthwhile home improvements, then up to 25% of the property value can be released for these purposes.
Available for both new purchase and remortgages, the new RIO range is available to older consumers aged 55 and over who can meet the standard affordability assessments by demonstrating sustainable income in retirement.
If an application is in joint names, each of your clients must be able to individually satisfy affordability criteria. This can be established either by a transfer of pension rights, joint investments or a specific life policy.