We are pleased to have launched our residential Retirement Interest Only plan. The RIO will sit alongside our existing 55+ Interest Only (and ER plans for those who are licenced).
The 55+ RIO
The mortgage has been launched in direct response to the FCA’s relaxation of rules on lending to older borrowers and will help older homeowners with reliable pre and post retirement incomes access borrowing.
The mortgage enables IO payments to be made until the customer dies or goes into long term care; it’s at this point the capital is repaid. The new mortgage product removes the worry and financial stress from older borrowers who until now may of had to sell their home or cash in a pension or investment to pay off their existing mortgage.
What makes it unique:
- It’s the first product of its kind
- Interest only for over 55’s with no end date
- It’s not an equity release product which means it doesn’t require a ‘specialist’ adviser. Borrowers can just go to their regular mortgage broker or IFA.
Who might it suit:
The product is a lifeline to millions of homeowners reaching the end of their interest only mortgage term who have no means of repaying the capital forcing them to sell up or cash in vital pensions or investments. It also works for those who:
- Don’t want to or can’t due to age change over a repayment mortgage as their payments would rocket, they are still working in many cases and they don’t want to sell.
- They can’t re-mortgage with a mainstream lender as the terms on offer are not long enough that is if they will consider them at all due to age.
- It can also help older borrowers who want to re-mortgage or buy a new home in or close to retirement who have been unable to because mainstream lenders won’t lend to them due to their age. The RIO mortgage allows borrowers to re-mortgage their home or purchase a new one with no requirement to ever have to find a way to repay the capital because it will automatically be repaid when the house is sold.
What can we do that other lenders can’t?
We have over 50 years’ experience with later life borrowers, our underwriters are experts in assessing income from both pre and post retirement so we can build up the bigger picture when it comes to affordability. We are a responsible lender, if customers become vulnerable at any point we know how to help and support them. We understand the older borrower and don’t see them as something to stay away from but as an important customer who deserve choice and flexibility.
For more product information contact your BDM or visit our website.
