Are you wondering how retirement interest only (RIO) mortgages compare to standard interest only (IO) and lifetime mortgages?

When considering your clients’ needs, it’s important to know that RIO is not a replacement for either standard IO or lifetime mortgages, but offers an alternative product solution for later life borrowers.

Retirement Interest Only (RIO) mortgages are designed so borrowers can use the sale of their home as a repayment strategy to repay their mortgage balance when they die or move into long-term care. Unlike a Lifetime Equity Release mortgage, the interest doesn’t roll up on a RIO mortgage, meaning that customers have certainty of the amount to be repaid when the mortgage ends. Customers must be able to maintain the interest only payments throughout the life of the mortgage. View the key differences here.