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Retirement Interest Only (RIO) mortgages

Our retirement mortgage range allows flexibility for retired borrowers in later life.

Our retirement interest-only (RIO) mortgage is only available to retired borrowers on an interest only basis, with the loan being repaid by sale of the property on a set life event. They are for an open ended term.

Product Details

  • Maximum No of Applicants: 2
  • Minimum age (all applicants): 55 and in retirement
  • Minimum Loan: £30,000
  • Maximum Loan: £1,000,000 (Loans over this are priced on a bespoke basis and have restricted LTV’s)
  • Minimum Term: 5 years
  • Maximum Term: no maximum
  • Repayment: Interest Only repayable from sale of property upon vacating (by latest occupant) i.e. death or moving into residential care facility

Specific Product Criteria

N.B. The POA product requires a Power Of Attorney to be in place for contact reasons.

  • Affordability (Joint Applicants): For joint applications, affordability must be proven against each applicant individually (to ensure the loan remains affordable in the event of death of the other applicant)
  • Couples living together in the property (whatever relationship) must both be named on the mortgage and the Title
  • Independent legal advice is required before entering into the mortgage contract
  • Adult Occupiers are acceptable provided they have the capability to execute a consent form waiving their rights to the property (excluding employed carers)
  • Please note Retirement Properties (with restricted occupancy clauses) are not within policy
  • Mortgage Exit Fee – Retirement Interest Only Mortgage Product.
    You will have to pay this if:
    • Your mortgage is repaid in full,
    • You transfer the mortgage to another lender, or transfer borrowing from one property to another

*Overpayments of up to 20% per annum are allowed without penalty.

PLEASE READ THE GUIDANCE NOTES BEFORE SUBMITTING A CASE

In addition, please print off a copy of our Supplementary Sheet for your customer.

RIO mortgages

Retirement Interest Only (RIO) POA Mortgage - Fixed

Initial rate

3.27% (fixed)

Product period

31.01.2024

Then changing to our SVR

5.39%

Deposit required

50.00%

The overall cost for comparison is

5.10% APRC

Arrangement fee

£999

Retirement Interest Only (RIO) Mortgage - Fixed

Initial rate

3.47% (fixed)

Product period

31.01.2024

Then changing to our SVR

5.39%

Deposit required

50.00%

The overall cost for comparison is

5.20% APRC

Arrangement fee

£999

Retirement Interest Only (RIO) POA Mortgage - Discount

Initial rate

2.89% (variable)

Product period

3 Years

Then changing to our SVR

5.39%

Deposit required

50.00%

The overall cost for comparison is

4.30% APRC

Arrangement fee

£499

Retirement Interest Only (RIO) Mortgage - Discount

Initial rate

3.19% (variable)

Product period

3 Years

Then changing to our SVR

5.39%

Deposit required

50.00%

The overall cost for comparison is

4.30% APRC

Arrangement fee

£499

Your home may be repossessed if you do not keep up payments on your mortgage