Retirement Mortgages
Mortgages

Retirement

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Retirement


Our Retirement Interest-Only Mortgages (RIO) have been designed to help retired borrowers over the age of 55, that don’t want a maximum loan term.

 

With a RIO mortgage, you can have an interest-only mortgage for as long as you need it. Read our RIO Important information to learn more.

Discount Mortgages

(LT22) 2 Year 2.81% Discount Floored RIO

Initial rate

2.39%

Subsequent Rate (SVR)

5.20%

Overall cost for comparison

5.10% APRC

Maximum loan to value (LTV)

50%

Incentives

None

Arrangement Fee

£499

Early repayment charge

Yes

(LT26) 5 Year 2.51% Discount Floored RIO

Initial rate

2.69%

Subsequent Rate (SVR)

5.20%

Overall cost for comparison

4.70% APRC

Maximum loan to value (LTV)

50%

Incentives

None

Arrangement Fee

£499

Early repayment charge

Yes

Help Centre

Important Information to consider if you take out a RIO mortgage


IMPORTANT INFORMATION
Mainstream mortgages up to 85 years old

Other Retirement Lending

Did you know that many of our mainstream mortgage products allow up to 85 years old at end of mortgage term?
Dependent on your personal circumstances. Seek independant advice when borrowing into retirement.

View Mainstream Mortgages

3 easy ways to apply

Apply online

Enquire Online

Complete our quick online enquiry form and we'll get back to you within one working day.

ENQUIRE ONLINE
Apply in branch

Apply in Branch

Arrange to meet an expert Mortgage Adviser in one of our six branches.

BRANCH FINDER
Apply by phone

Give us a Call

0161 429 4318

Monday - Friday

08:45 - 17:00

Retirement Interest-Only FAQs

What is a retirement mortgage?

Our Retirement Interest-Only Mortgages (RIOs) have been designed to help retired borrowers over the age of 55, that don’t want a maximum loan term.

The loan is secured against your property. As you only pay the interest every month, the amount you owe won't decrease over time.

These RIO Mortgages are aimed to meet the unique needs of older borrowers, that are either looking to release equity or move home. Instead of having a fixed end date, if necessary, the amount borrowed can be paid back from the sale of the property when the borrower dies or moves into alternative accommodation, such as long term care.

During the term of the mortgage, the borrower is responsible for meeting the monthly payments, which can be interest-only or capital and interest repayment.

Read our RIO Important Information to learn more.

Who is a retirement mortgage potentially suitable for?

A Retirement mortgage may be suitable for you if:

  • you are moving house or re-mortgaging your existing house

  • you are over the age of 55

  • you will be over the age of 75 at the end of the mortgage term or wish to use the sale proceeds of your property, either on moving or on death, to repay your loan

You must have a source of income, typically, from a pension, so that interest payments can be afforded for the term of the mortgage, which may be up to your full lifetime. You should consider whether your income is index linked, so that you can be sure it will keep up with the cost of living over the term.

How much can I borrow?

The Society can lend up to 50% of your property’s value, which will be confirmed by a professional property valuation.

The Society can lend a minimum of £25,000 and a maximum of £750,000. The amount you choose to borrow will depend upon your needs and your ability to repay the interest each month. Following an assessment of your income and expenditure, our adviser will be able to guide you as to how much the Society may be able to lend to you.

Can I get a mortgage at my age?

Unlike Standard Mortgages, our RIO mortgages do not have a maximum age limit. 

For more information on lending into retirement, read the Building Societies Association - Can I get a mortgage at my age? Consumer Informaiton Guide.

What is a Lasting Power of Attorney (LPA), why is it important and do I need one?

A Property and Financial Affairs Lasting Power of Attorney (LPA) is a legal tool that allows you to appoint someone to make decisions about your money, property and financial affairs on your behalf. The appointed person can manage your finances for you in the future, if you reach a point where you are no longer able to make decisions for yourself or are physically unable to leave your home.
 
The Society especially recommends that older borrowers seek independent financial and legal advice relating to an LPA. This ensures mortgage repayments and other aspects of your finances can be easily dealt with by your family or other trusted representative in the event that you are no longer able.

Legal Advice

The Society strongly recommends that anyone considering this product take independent legal and financial advice before entering into the mortgage contract.
 
You may also find it beneficial to read the Building Society Association's 'Can I get a mortgage at my age?' guide.

What is equity?

Equity refers to the value of a homeowner's property, less the amount of the outstanding mortgage.

Important Things to Consider

  • Your home could be repossessed if you do not keep up with payments on your mortgage.  
  • As we will not lend greater than 50% of a property’s value, it’s unlikely that the value of the house will fall below the amount of the loan, providing payments have been maintained. However if this situation does arise on the sale of the property then the surplus amount will be due from you or your estate. 
  • Borrowing against your home may reduce the value of your estate. We recommend that you discuss your plans with your family, or others who may inherit your home, so they are aware of your plans.  
  • If you wish to move to another property then we may consider transferring the loan to the new house at the same time that you sell your home. The decision to do this will depend upon our prevailing Lending Policy and other factors such as the acceptability of the new property for lending purposes, our assessment of mortgage affordability and the loan to value ratio.  
  • If you need to permanently vacate your home and move into sheltered accommodation or long term care, the loan will become repayable from the sale of your home.  
  • If your application is in joint names, the mortgage payments may become unaffordable in the event of death of either party.  This may necessitate the sale of the property and repayment of the outstanding loan, and the survivor needing to move to alternative accommodation. You should ensure that you have a credible plan for this eventuality.  
  • You must ensure that the property is maintained to a reasonable standard and any essential repairs are carried out during the term of this mortgage.
  • Taking this mortgage may affect your personal taxation position and your current or future entitlement to state benefits. You should consider seeking further information from HM Revenue and Customs, the Department of Work and Pensions or another source of advice such as a Citizens' Advice Bureau. 
Retired Couple