(LT26) 5 Year 2.51% Discount Retirement Interest-Only

Designed for:

Retired borrowers who are buying or remortgaging their home, have at least 50% deposit/equity and wish to pay the monthly interest only, with the loan repayment being from the future sale of the property.

 
Not designed for:

Borrowers who are under the age of 55 or who want a fixed rate of interest.

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

(LT26) 5 Year 2.51% Discount Retirement Interest-Only

Initial rate

5.59%

Subsequent Rate (SVR)

8.10%

Overall cost for comparison

7.50% APRC

Maximum loan to value (LTV)

50%

Incentives

None

Arrangement Fee

£499

Early repayment charge

Yes

Product Summary

Initial Rate

5.59% variable, which includes a 2.51% discount from our Standard Variable Rate for 5 years.

Followed by:

Our Standard Variable Rate* for the remainder of the term, currently 8.10%.

Overall cost for comparison*

7.5% APRC

Fees & Incentives
Fees
 

Arrangement fee - £499 (Can be paid up front or added to the loan)

Funds transfer fee - £20 (payable before completion)

Mortgage exit fee - £100 (payable when the mortgage is fully repaid)

Standard Valuation Fee – (Amount varies dependent on the property value)

 
Incentives

None.

Early Repayment Charge

A full or partial capital repayment, which exceeds 10% of the capital balance amount in any one year will attract an early repayment charge of:

5% in the 1st year

4% in the 2nd year

3% in the 3rd year

2% in the 4th & 5th year

This will not be charged if the sale of the property and repayment of the mortgage is related to the death of the borrower, or if a joint mortgage, the death of the final surviving borrower.

Loan Purpose

Purchase or remortgage

Repayment Method

Interest-Only. 

Maximum Loan to Value (LTV*)

50%

Loan Size

Minimum £25,000 – Maximum £750,000

Product Information
Age Restrictions
 

There is no maximum age, but all borrowers must be at least 55 at date of application, be retired or planning to retire in the next 2-5 years.

 
Term

This mortgage does not have a specified mortgage term. We will only require full repayment within 6 months of when the property is permanently vacated by the borrower (or final surviving borrower, if in joint names), due to death, moving to another property, or entering sheltered accommodation or long-term care.

 
Portability

This product is portable and can be transferred from the existing property to a new property.

 
Interest rate floor

The interest rate for this mortgage has a ‘floor’, which means that it will never fall below 2.69% during the discount period.

 
Adding fees

If you add the arrangement fee to the loan, then interest will be charged on it resulting in a greater amount payable over the term of the mortgage.

 
Eligibility

Property must be in England and Wales with a value of £140,000 or more.

Please refer to our Retirement Interest-Only page for full product details.

Mortgages are subject to underwriting.

Representative Example

This information is to help you understand the typical cost of this mortgage and is not representative of your personal circumstances.

A mortgage of £78,276.00, payable over 19 years, on an interest-only repayment basis, with an initial payable rate of 5.59%, which includes a 2.51% discount from our Standard Variable Rate (SVR) for 5 years and then on our SVR, currently 8.10%, for the remaining 14 years. The initial term would require 60 monthly payments of £364.64, followed by 168 monthly payments of £528.36.

The total amount payable would be £190,272.88, made up of the loan amount (£78,276.00), plus interest (£110,642.88), Arrangement Fee (£499), Standard Valuation Fee (£485), Solicitor Fee (£250), Funds Transfer Fee (£20), and a Mortgage Exit Fee (£100).

The overall cost for comparison is 7.5% APRC.

*Important Notes:

Once the product matures the interest rate will revert to our Standard Variable Rate (SVR) unless a new product is taken out. Our SVR is currently 8.10%. This is set by us and may go up or down in the future.

The Overall Cost for Comparison is given as the Annual Percentage Rate of Charge (APRC) and includes all charges incurred relating to the mortgage/product. The APRC enables you to compare the cost of different products.

The LTV is calculated by us using your current mortgage balance and our current assessed valuation of your property.

Help Centre

RIO Mortgage Important Information

We've put together some important information about RIO mortgages that you should read before applying


IMPORTANT INFORMATION

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Mortgages are secured on your home. You could lose your home if you do not keep up repayments on your mortgage.