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.
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.
Here's everything you need to know.
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.
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.