The 55+ Retirement Interest Only Mortgage
The UK’s first residential ‘no end date’ mortgage for over 55’s from a company dedicated to later life lending since 1965.
What is it:
A residential interest only mortgage for over 55’s with no end date or term, which means it will take a borrower through to the end of their life.
The mortgage enables IO payments until the customer dies or goes into long term care; it’s at this point the capital is repaid.
What makes it unique:
- It’s the first residential mortgage product designed specifically to offer interest only borrowing for over 55’s, with no end date or term.
- It’s not an equity release mortgage and its available whole of market which means borrowers can go to their regular mortgage broker or an IFA.
About the product:
The 55+ RIO Mortgage, available on properties worth £100,000 or more with no minimum equity requirement offers a choice of 2 and 5 year fixes with rates from 3.44% and has no end date.
With a max LTV of 60% and loans from £20,000 to £500,000, the mortgage can be used for purchase or re-mortgage.
Its available in England, Wales and Scotland and can be sourced whole of market with free legal advice available on standard remortgages. It has a product fee of £995 and offers a proc fee of 0.55%.
Who might it suit:
The product could be a lifeline to millions of home-owners reaching the end of their existing interest only mortgage term. They might 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) switch to a repayment mortgage as their payments would rocket. They are still working in many cases and understandably, don’t want to sell up or downsize.
- They can’t re-mortgage to interest only with a mainstream lender as the terms on offer are not for long enough, or in many cases the lender will not consider them at all due to age.
- Older borrowers who want to re-mortgage or buy a new home, in or approaching retirement who have been unable to secure any help through mainstream lenders due to their age and available income streams.
- The RIO mortgage allows borrowers with reliable income streams to re-mortgage their home or purchase a new one. There’s no requirement to ever have to find a way to repay the capital, it’s automatically repaid when the house is sold.
Need to know more?
Including full list of rates, fixes, ERC’s and affordability requirements then click here or contact us on 0800 731 4076
