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.