Retirement Interest Only (RIO) mortgages

This product allows flexibility for borrowers in later life. 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
• Minimum Loan: £30,000
• Maximum Loan: £3,000,000 (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 - Mortgage repayable from sale of property or upon last occupant's death or moving into long term residential care.

Specific Product Criteria

N.B. The POA product requires a Power Of Attorney to be in place at completion, 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) All income must be proven as sustainable for the term of the mortgage.
• Retirement - Applicants must be retired or no more than 10 years from retirement and be able to provide projections for pension income.
• 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.